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  • FIRST POST
    • Zincmouse084
    • By Zincmouse084 8th Jul 17, 10:23 AM
    • 2Posts
    • 0Thanks
    Zincmouse084
    5 years paying, no end in sight
    • #1
    • 8th Jul 17, 10:23 AM
    5 years paying, no end in sight 8th Jul 17 at 10:23 AM
    We started an IVA in December 2011, never missed a payment for the amount of just over £34000 (unsecured creditors) our detailed court documents stated that an estimated dividend of 46% was available to creditors (which included a claim of a big high street bank for the amount of £8000) - we have paid £350 per month, we never missed a payment and have paid more into the iva of £400 pm due to my husband working overtime and a PPI payment of £200 was also made to this company. Nearing the end of our 5 year term we were advised to release equity in our property which we were told we could not. Not a single payment has been made to the bank for the claim of £8000 but they advised us a month before our IVA had reached its 5 year term that they had now received a claim from them. I forwarded a complaint to the IP in March this year stating the facts and have waited more than 3 months for their reply. In the meantime I contacted the IP complaints team who have now forwarded my complaint on to ICAEW who are dealing with my complaint. I have today finally received a letter from the IP stating that I have 14 days to come up with more funds or they are going to have a creditors meeting and my creditors may apply for me to go bankrupt. I don't know what to do! Can the ICAEW intervene in this as my complaint is being handled by them or do I have to bite the bullet and pay out another year?

    I'm so confused, my IP has made my life a misery for the past year can someone please advise me on what to do.
    Last edited by Zincmouse084; 08-07-2017 at 11:10 AM.
Page 1
    • fatbelly
    • By fatbelly 8th Jul 17, 12:01 PM
    • 11,221 Posts
    • 8,389 Thanks
    fatbelly
    • #2
    • 8th Jul 17, 12:01 PM
    • #2
    • 8th Jul 17, 12:01 PM
    It's normal for someone who cannot release equity in the fifth year, to have make payments for a sixth year. Is that the problem from the IP's point of view - that they have asked for payment to continue for the sixth year and you have not done so? Or do they disagree that you cannot release the equity?

    What was your complaint actually about?
    • Zincmouse084
    • By Zincmouse084 9th Jul 17, 11:00 AM
    • 2 Posts
    • 0 Thanks
    Zincmouse084
    • #3
    • 9th Jul 17, 11:00 AM
    • #3
    • 9th Jul 17, 11:00 AM
    My complaint is the fact that a few weeks before the 5 yr period they suddenly came up that the bank had finally submitted a clam to them - I have asked proof of this claim numerous times but they have never sent me anything (they were originally listed but for the past 5 years no payments were made to them) and I would have to pay for another year or release equity from my home. I have no equity in my home available. They then said i should take out a loan with a company they deal with but the repayment for the loan is 14 years, this will take us beyond our retirement age.
    • sourcrates
    • By sourcrates 9th Jul 17, 11:16 AM
    • 11,896 Posts
    • 11,396 Thanks
    sourcrates
    • #4
    • 9th Jul 17, 11:16 AM
    • #4
    • 9th Jul 17, 11:16 AM
    As said above, the requirement to carry on paying for a sixth year would of been included in your IVA protocol, if you were unable to release equity in your home.

    Creditors have, i believe, till the end of your arrangement to put forward there claim, as they were included in the IVA initially, i cant see your problem to be honest, they are not paid until the arrangement ends, the money sits in a seperate account until its wound up and then payments are made, you just keep paying your normal monthly payments for 12 months more, after which you will be discharged from your liability.

    Please tell me if theres something i have missed, as i have been through exactly the same process.
    Last edited by sourcrates; 09-07-2017 at 11:18 AM.
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    • fatbelly
    • By fatbelly 9th Jul 17, 1:08 PM
    • 11,221 Posts
    • 8,389 Thanks
    fatbelly
    • #5
    • 9th Jul 17, 1:08 PM
    • #5
    • 9th Jul 17, 1:08 PM
    You are not being asked to pay for a sixth year because of the late claim from the creditor. Their payment is between them and the IP.

    You were asked to pay for a sixth year as an alternative to raising equity from your home.

    The concept of a loan to finish an IVA is a recent one, has pros and cons, and you should not be forced into taking one or penalised for not doing.
    • TakeAwayKing
    • By TakeAwayKing 13th Jul 17, 8:52 AM
    • 102 Posts
    • 51 Thanks
    TakeAwayKing
    • #6
    • 13th Jul 17, 8:52 AM
    • #6
    • 13th Jul 17, 8:52 AM
    When a creditor submits their claim is irrelevant
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