We have been in an IVA for over thre years and due to lack of money we have fallen behind on the payments. We have offered to sell our house, which has £20,000 in equity, however the £10,000 we have offered the IVA has been rejected and we have been told that the IVA will now fail. If the IVA is terminated will the restriction to sell our property be lifted on termination.
Helen We could not offer more as we will have to pay six months upfront rental due to credit rating and IVA. Have only asked for £3,000 for removal fees and some bits of furniture, as most of our furnture is fitted and the rental house we are looking at has none. They dont seem bothered about the fact that the only alternative is Bankrupcy and the creditors will see nothing at all. I dont understand?
Seems unusual for creditors to reject a variation such as yours. Did you get a reason why?
As to the question of the restriction it will be lifted once the IVA is terminated and you can go ahead and sell the property. The funds released would pay for the costs of selling, moving and the £600 each needed for bankruptcy. If this is what you do it would be very important to keep receipts of everything spent and any money left after the essentials should be kept and given to the Official Receiver.
We have been told that as the equity is £20,000 and we are only offering 50% to the creditors that it is not enough. We have tried to explain that due to the IVA we have to pay six months rent up front and we are only asking for £3,000 for removal costs and furniture, as where we are most of it is fitted and the rental property is not. We cannot move ourselves as my wife is disabled and I have a heart condition. I really dont think we are asking to much, we have nothing else.
Was there a formal variation put forward or did your IP just say that it would not be accepted? It seems a bit strange because after selling costs, removal expenses and relocation there would not be more than £10k left anyway.
Thanks for replying. It was a formal variation which was rejected and now we are told that the creditors just want it to fail? We have since stated that if the sale was able to go through, then after the £10,000 to the fund we would be happy to then continue the monthly arrangement which failed, as we would then be able to afford such due to lower living expences. We have been told that the creditors would not be interested. We are trying to do the right thing, within our capabilities.
I dont think your IP is doing you any favours here at all. Can you tell us which company you are dealing with as some IP's post on here and may be able to offer better guidance if they know who you are dealing with.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I wonder if your need to retain funds was clearly explained to creditors in the variation report? It all seems pretty reasonable to me - although six months advance rental seems very steep and I am sure if you shopped around savings could be made in this area.
Due to the IVA we could not pass the credit check so it was either six months in advance or a guarantor, which we dont have. It seems to be explained quite well in the variation of which i have a copy.
With all the information I am recieving, on the fact that this variation should have been accepted, I am becoming increasingly concerned about my IP. Is there sombody I can approach to look into this. When it comes down to it, we cannot do more than we have done or offered.
Bilcher it may help to let us know the company you are using as Mel or one of the other posters may personally know the IP and may be able to ask a few questions directly.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
The company I am dealing with is McCambridge Duffy and the IP is David Lovsey. They tell me they have made another approach to some of the creditors and we are awaiting a decision, but we are becoming increasingly dispondent and dont know what else to do. It looks like the whole thing is falling through as today will be the day the rental property will go back on the market as they wil not hold any longer, we will never find another 5 bed house for that price and dont know where to go from here.
