Just got IVA paperwork through and have a question

yogibear999

Hi all,

I have just got the proposal for mine and hubby's IVA through this morning and have a question regarding our landlord. They have said that because we live in rented accommodation our landlord is classed as a contingent creditor for any future rent liability. However as we are not in arrears and have excluded the landlord from the IVA, as a nominee he must be reported to the other creditors in the IVA report and it may affect the viability of the arrangement in the future. By specifically excluding the landlord, should we fall into arrears the landlord may not be bound by the rules of the IVA and payments to the arrears would jeopardise the IVA. If rent payments are not made as required there is a possibility that it could put the tenancy in jeopardy and ultimately result in the failure of the IVA. They then suggest that we seek independent legal advice on this matter.

I'm really confused by this! Is this standard for anyone who rents and is in an IVA? I wouldn't even know where to go for advice! I feel so sick, this is really beginning to feel real!

Thanks in advance

skibadee

Who are you taking your IVA out with?

yogibear999

Hi skibadee, thanks for replying. It's with payplan

skibadee

I did mine through CCCSVA and wasn't asked those questions I would give them a ring and query it.

MIVAA

Hi yogi,

I don't think you have anything to worry about.

The IP has to explore all eventualities, that's what their role is when they represent you as your IVA's nominee.

All they are really saying is this. If you don't pay your rent - and the landlord chases you for the rent arrears - any rent arrears will not be allowed to go into and be written-off by the IVA.

Therefore, if you don't pay your rent, you might face eviction, which might in turn upset the affordability of the IVA contribution you are about to agree to - and if this is the case, the IVA might fail, should you no longer be able to afford the IVA payments. Which is really a load of if's, buts and maybes.

You should ask yourself this. Under what circumstances will we deliberately withhold payment to our rent, and I think you'll find there won't be many.

If you are unable to pay your rent due to unforeseen circumstance, then it would be the result of a larger financial problem I assume, so I think you'd find your IVA would be in jeopardy anyway, and not just because you missed your rent payment, if you see what I mean.

I hope this helps

MIVAA

yogibear999

Thanks for that advice, it makes much more sense now. I swear I'm not thinking clearly at the moment! Under no circumstances would we not pay our rent, if it came to it family would help us out so I don't think it would be a problem.

I have just been examining our paperwork and looking at our budget plan and noticed that they have not included any medical costs in our budget such as dental, glasses and prescriptions :rolleyes: Looks like we have some phone calls to make!

Thanks again for your advice :beer: