IVA Question

rangers_2

I wonder if anyone can help me. My husband and i have been in an IVA since December 2004. We have had variations made both up and down and always paid. Anyway we brought our first house last year and unfortunately our circumstances have changed in the last six months and our expenditure form is minus 250 every month. I spoke to my IVA person who said the only options we have are : DMP ( but paying it all off when i asked her how much i owed she did not know ), carrying on with the IVA at reduced payments but extending the 5 years to 6 years ( which i did not want as i can see the final post if it stayed at 5 years ) or finally to go bankrupt ( which is a no no as i do not want to risk losing the house.

Could anyone advise me as to what i should do as i really want this to be sorted. She has just been on the phone to me asking for my variation form so she can put it to the creditors.

insider66

rangers wrote: »

I wonder if anyone can help me. My husband and i have been in an IVA since December 2004. We have had variations made both up and down and always paid. Anyway we brought our first house last year and unfortunately our circumstances have changed in the last six months and our expenditure form is minus 250 every month. I spoke to my IVA person who said the only options we have are : DMP ( but paying it all off when i asked her how much i owed she did not know ), carrying on with the IVA at reduced payments but extending the 5 years to 6 years ( which i did not want as i can see the final post if it stayed at 5 years ) or finally to go bankrupt ( which is a no no as i do not want to risk losing the house.

Could anyone advise me as to what i should do as i really want this to be sorted. She has just been on the phone to me asking for my variation form so she can put it to the creditors.

Hi there,

I would be very careful here if I were you, it may well be best to agree to another year on the IVA,

If you go onto a DMP now, you will probably find you have paid very little of the original debt off...

Typically the first 2 years payments go to pay the IP's fees

HTH

peachyprice

I completely agree with insider, you'll probably find yourself back to square 1 with very little having been paid off your debts if you went back to a DMP.

Do you have any equity in the house? If the IVA is re-negotiated with your creditors they may well expect you to release any equity in year 5, if that isn't possible it would be extended to the 6 years anyway.

If there's no equity it's highly unlikley you would lose the house if you went bankrupt.

lexie2005

I agree too that if you go to a DMP it will be like starting again but only you can really make the decision. I would check though cos if an IVA fails they may have the optopn of making you bankrupt, I may be completely wrong there though.....

CCCS_Matthew

Hi there.

Did you advise the Insolvency Practitioner at the IVA company that you were buying a property? As an IVA is a legally binding agreement, you sign to say that you will not take on any further credit on, and assuming you had to take a mortgage on, there is a good chance that you've breached the agreement you have with the creditors.