iva since July 2006, now supervisor failing the arrangement

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birdie
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by birdie » Thu Jan 14, 2010 12:35 pm
I have been in an iva since July 2006
It was based on my partner and my joint income. Then I was on my own and got behind with payments. I have now received a letter from the iva supervisor, he is failing the arrangement - I am now on dla and benefits and wont be able to remortgage next year. He is issuing a certificate of termination.
Does this mean I will have to go bankrupt after all?
thank you for your help

 

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kallis3
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by kallis3 » Thu Jan 14, 2010 12:55 pm
Hello Birdie and welcome to the forum.

Sorry you have had such problems with your IVA and that it is being terminated.

Do you have any assets that you might lose under bankruptcy? If not, this could be an answer for you.

Otherwise you could look at doing a debt management plan.

 

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back on track
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by back on track » Thu Jan 14, 2010 2:08 pm
could you not ask ip to arrange a creditors meeting and ask for whats been paid already as a f&f offer?
you dont have anything to lose

 

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kallis3
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by kallis3 » Thu Jan 14, 2010 2:48 pm
If it's already been terminated, it may have gone past that point.

 

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MelanieGiles
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by MelanieGiles » Thu Jan 14, 2010 3:52 pm
The IVA should not have been terminated by the IP if there was a chance that a variation could have been suggested to creditors first. How much have you actually paid into the IVA to date, and how much do you owe to creditors? Could you also confirm the level of your monthly payments into the IVA, and whether you feel you could afford to pay anything moving forward.

 

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birdie
Posts: 5
by birdie » Thu Jan 14, 2010 9:55 pm
I am in arrears of £4,600 but basically the iva supervisor has said that the equity in the property which was to be released in year 5 (the biggest part of the arrangement) is no longer probable - probably since I cant see who is likely to give me a mortgage when I am on benefits.
I was paying £70, I have offered to pay £140 which was i was originally paying when the iva was started, and thought I would be able to continue paying this, for an extra year if necessary, but nothing has been said about this.
Theres no discussion, the supervisor has just said 'I will be issuing you a certificate of Termination to all your creditors without delay'
That seems very final.
Thank you for all your support.

 

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MelanieGiles
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by MelanieGiles » Thu Jan 14, 2010 11:21 pm
How much equity is there in your property at present, and is it jointly owned?

 

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birdie
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by birdie » Fri Jan 15, 2010 11:50 am
I think there should be about £40,000 equity in the property, not sure with prices having gone down so much, the property is only in my name.
The amount I was to release in year five was £47.000 which was 75% of the projected equity.
I'm 57, so too young to apply for equity release
I cant see I can get a mortgage after having failed an iva, especially since I assume everyone I havent actually paid via the iva can now come and claim the balance of their original debts.
Its back to going bankrupt again and losing the house, and i really dread attempting to move.

 

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MelanieGiles
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by MelanieGiles » Fri Jan 15, 2010 8:46 pm
How long have you been living with your partner, and do they contribute to the upkeep of the property? Could you also confirm how much you actually owe to creditors and how much you are required to pay on a monthly basis under the terms of the IVA?

 

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birdie
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by birdie » Sat Jan 16, 2010 12:37 pm
I was paying £140 on the iva, which i reduced to £70 while I was alone, my partner is now back and I have offered to pay £140 again and catch up with the arrears, but since we are both on benefits I dont think there is any way we could get a mortgage.
I had a final letter today saying they will not be making me bankrupt, they are not pursuing their fees but writing them off which is kind.
so its back to square one i think if the creditors pursue me, I guess i will have to go bankrupt and as there is a small amount of equity although nowhere near enough to pay everyone, I guess i will just have to sell the house and move.

 

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MelanieGiles
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by MelanieGiles » Sat Jan 16, 2010 4:57 pm
How much do you owe to your creditors please?

 

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birdie
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by birdie » Mon Jan 18, 2010 3:42 pm
I was to release £47,000 in year five, I'm not sure of the total I owed the creditors, i think it was in the region of £87000 - including £22,000 to my bank.

 

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MelanieGiles
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by MelanieGiles » Mon Jan 18, 2010 9:08 pm
£140 pounds per month, with an IVA relying on such a large amount to be raised from a remortgage is reckless to say the least! How on earth did your IP expect you to be able to fund the additional borrowings of £47,000 - even if you could have raise that sum of money which has to be extremely doubtful in today's market, or are you expected to sell the property?
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