Stuck with service charges whilst in an IVA

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Mik20

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Post by Mik20 » Mon Aug 27, 2018 6:03 pm
I'm in an IVA since April. I didn't have any debts but have 2 properties in negative equity which are now in the process of being sold, and going into an IVA was a way of dealing with the negative equity. I was advised to stop paying all charges associated with the properties and these were entered as creditors for the IVA which was passed (mortgage debts, service charges etc).
One company helped me set up the IVA and is handling the sale of the properties, and administering the IVA.
The problem is that now I'm in the IVA but service charges from 2 different companies are building up. This has got to the stage of them threatening court proceedings (this is imminent with one of them) and saying that the lease of the properties will be forfeited. This doesn't make a massive difference to me as I am trying to get rid of the properties anyway, but I don't want to have to go to court (partly as I work abroad a lot) and am finding this whole situation extremely stressful.
The company who is adminstering the IVA (CD Fairfield) are acting on my behalf and have written to both companies explaining I'm in an IVA , but this doesn't seem to make any difference - they don't seem to recognise the IVA / and or, say that there are charges incurred since which aren't covered by the IVA.
I could get a relative to pay the charges but since I'm in an IVA I can't do this - so it's a catch 22.
Can anyone advise me?

Foggy

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Post by Foggy » Mon Aug 27, 2018 6:56 pm
My understanding is that only the charges accrued up until entering the IVA would have been covered by the arrangement. Ongoing charges should have been allowed for in your agreed expenses, so you would have been able to pay them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

sam389

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Post by sam389 » Tue Aug 28, 2018 8:23 am
Thanks for your input on this.

sam389

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Post by sam389 » Thu Aug 30, 2018 5:20 pm
Hi There - the service charge companies are disputing that the charges up until April (when the IVA was agreed) are covered by the IVA, saying that the IVA doesn't cover service charges and ground rent.
Although this is strange as they are definitely written in the IVA, and I wouldn't have thought an IVA could be drawn up with debts in it that can't legally be there.
Can you shed any light?
Thanks

Foggy

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Post by Foggy » Thu Aug 30, 2018 6:02 pm
I believe unpaid rent or ground rent cannot be included without the agreement of the creditor involved.

However, I believe I have seen service charges included. Limited, as said earlier, to thos charges accrued prior to the IVA. You need to speak to the IP and see if they agreed to the inclusion of ground rent and clarify the service charge position.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

sam389

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Post by sam389 » Fri Aug 31, 2018 1:28 pm
Thanks again for your input!
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