Can I apply for an IVA ??

InDeepPoo

Can I apply for an IVA ? I have 2 CCJs and never missed a payment, however, i was taken back to court last week and the Judge made a "Forthwith" order, which will now allow the creditor to apply for a charging order aginst my property (which is in negative equity),, Therefore.. If I have a Charging Order against my Property will this (together with the 2 CCJs) stop me getting a IVA ??
Your Advice Please... Thanks:question::exclamati

MIVAA

Hi InDeepPoo,

Having a charging order will not stop you from applying for an IVA, and neither would having negative equity.

All that will happen is an allowance would be attributed to the payment to the charge, just as if it were a secured loan.

You would still need to have a sufficiently high unsecured debt level to enter into the IVA, which would include the 2 CCj's that you mention. The IVA would overwrite these CCj payments and they would be included into the IVA's contribution.

So to recap, the charging order would effectively secure the associated debt, but the CCj debts would become part of your IVA.

If you wanted, and depending on how much time you can spend on this, you might even be able to apply for an interim order which potentially could stop the court issuing the charging order whilst your IVA application was considered. This would potentially stop the debt becoming secured, and enable it to be covered by the IVA - however, you should also consider whether the creditor concerned would agree to the IVA, and if not whether his vote alone would cause the IVA to be rejected.

I hope you get the gist.

MIVAA

InDeepPoo

Thanks MIVAA, Your advice is of great help. just one more thing, ! How / When would I apply for an Interim Order ? and what would I be asking for ?? sorry not very good at the "Law"... Thanks

MIVAA

An Interim Order is an order from the court to all creditors.

When granted, it implements a freeze on all legal action being taken, effectively stopping the action in its tracks for a set period, which then allows for an IVA to be proposed without the threat of a creditor taking legal action in the meantime.

An Interim Order can only be applied for through an Insolvency Practitioner, after an IVA proposal has been drafted.

I would suggest that you decide as soon as possible whether or not you wish to apply for an IVA.

If you do, then contact a local Insolvency Practitioner (through yellow-pages) and arrange for a consultation on your personal circumstances to see if an IVA is a viable option for you. This consultation should be free but it will cost you about £150 for the Interim Order, so make sure you are happy with the IP's advice before you go ahead.

You could try CCCS or Payplan as well, but I'm not sure whether you'd be able to get them to respond quickly enough to your immediate situation.

If an IVA is appropriate, the IP will help you from there - but even if it isn't, they should inform you of all your available options at least.

I hope this helps

MIVAA

InDeepPoo

MIVAA, Many Thanks for the advice, I have been in contact with CCCS in past so guess I will ask them 1st, Thanks Again