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  • FIRST POST
    • mrvillicus
    • By mrvillicus 3rd Nov 17, 3:44 PM
    • 4Posts
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    mrvillicus
    IVA and house move - possible foul play issues!
    • #1
    • 3rd Nov 17, 3:44 PM
    IVA and house move - possible foul play issues! 3rd Nov 17 at 3:44 PM
    Hi guys, bit of a complicated one this so I'll post a timeline of events first with my questions after;

    1. Me and wife apply for joint IVA 2 years ago
    2. Joint IVA gets rejected, sole IVA in wife's name is accepted which contained debts for total of 4 creditors totalling approx 8k.
    3. Each year wife had to submit income/expenditure
    4. Approx 1 and 1/2 years wife is asked to sign a form giving consent to placement of restriction on land registry should house be sold.
    5. One of creditors write to advise debt written off
    6. 2 months ago we decide to sell house.
    7. 1 month after offer is accepted.
    8. We then get notified by solicitor that he has to withhold 12k due to land registry restriction.
    9. Due to land registry restriction solicitor asks for more money and for dealing with IVA people
    10. IVA people advise they cannot confirm 6k of the debt and for not know who actually owns the debt, so have given them 28 days to respond and confirm debt.
    11. Whilst doing admin I personally noticed that one of the debts in my wife's IVA was in my name and not hers and also that 6k of the total amount was for accounts to one creditor which since cannot be confirmed and are not on wife's credit report therefore are not applicable to total debt amount in IVA
    12. IVA people confirm that as the 6k debt is not on wife's credit report it's actually invalid and does not stand.
    13. Total debt now owed goes from 8k plus to £800 which is now the only one outstanding debt which can be confirmed by creditors and is actually in wife's name

    Here are my questions:

    1. One of my debts was included in my wife's IVA, the creditor has confirmed it's in my name and not hers, what can be done legally about this error?
    2. The original amount was 8k plus, however without the account in my name the total would be approx 6k, would this be enough to create an IVA?
    3. Why were the accounts not confirmed before IVA commencement? Because If they were then the IVA would not be valid!
    4. Who have the IVA company been having yearly creditor meetings with if one account was in my name and one other creditor, which held 3 accounts, aren't even trading anymore and haven't still confirmed any of the debts?
    5. This land registry restriction has caused us a delay in selling the house, and cost us additional money, however considering all of my points above, the restriction should not of been applied because the actual total amount of debt now stands at £800, not the original £8k, which included a debt in my name!
    6. Do we have any grounds to request or even demand this IVA be annulled and the registry restriction immediately be removed?

    Our initial qualm at the moment is not all of the facts above about the incorrect information within my wife's IVA, it's the land registry restriction because it's causing an unbelievable amount of admin, calls, stress and extra solicitor charges to us and delaying the property sale.

    Personally after writing all this I think this IVA and the way it was created is dodgy, it seems it was created to simply gain a completion fee by the insolvency team and nothing was confirmed by them before creating it to actually make sure it met the IVA requirements. The IVA company have been telling us they have been having creditor meetings, load of tosh, what about the original meeting to agree the actual IVA, they didn't even know who owned 6k of the debt!

    Anyway I appreciate there's a lot of info there and would appreciate any professional advice on this issue.
Page 1
  • National Debtline
    • #2
    • 3rd Nov 17, 4:53 PM
    • #2
    • 3rd Nov 17, 4:53 PM
    Hi mrvillicus and welcome to MSE,


    If you are unhappy with your IVA provider then you can look into a formal complaint with them. This would go to the IVA company first of all, and if it remains unresolved to your satisfaction you can normally escalate the matter to their trade body and ultimately up to the Insolvency Service. However, I would suggest that you approach this situation very delicately.


    You should start by asking them for a copy of everything that you have signed and look over it carefully. It can be a very difficult time when you fall into debt and have not yet put a solution in place. IVA's can be very pressuring and it is possible that the paperwork that was sent to you was quite overwhelming. My concern is that at some stage your wife could have signed something that verifies the information she provided to them (about her debts) is accurate and if that was not the case (because one of the debts was not hers) this could cause quite serious problems.


    Please be aware that this may cause the IVA to fail. I appreciate that you want the IVA to be voided/ annulled but a failure would be different, and can have consequences, such as bankruptcy. So, I would suggest you gather all of your paperwork, request copies from the IVA company if necessary and then you may need more legal advice. This may be outside of your conveyancing solicitors remit and you may need more specialist advice. I understand this may cost you more money, but it is very important that you check everything you have signed and agreed to first, before you make your next move. Best of luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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