please help me - really dont know what to do

FoggyBrain_2

Problem I see is that IF the sum of £10k is set in stone, the IP might be trying to help (albeit too late) by making it payable over a 24 month period as opposed to 12. This clause has been badly constructed with no view to what the reality might have been at the end of the term. As we now know, what looked rosy half a decade ago doesn't look so good now!

patchy987

the figure of £10,000 came about because at the time we started the iva that was the equity in our home, as house prices were rising rapidly here they capped it at £10,000 apparantly doing us a favour. i guess noone expected the house price crash.

at the time we would have signed anything to stop the debt collectors and endless phone calls, just wish i had known about this forum back then, things could have been so different

i will try to dig out all the original paperwork to see if anything else is mentioned that may help

Charco_2

yes Patchy, I was being serious. I'm basing it on my experience and knowledge within the industry but since I dont know your case well enough i would have to say it falls short of actual professional advice! (there's my wee disclaimer!)

As I was saying above, it is perfectly normal that there would be a clause within the IVA to address equity when the time comes... you should pay back as much as you can afford to towards your debts, but you shouldn't pay back MORE than you can afford.

I think it is a very badly worded clause (especially since you had ample contributions and a significant dividend without it anyway), but the saving grace is that the clause does say that you could extend by a year to address this equity (which would be quite normal - if you had equity).

I wouldn't ignore the fact that your IP will be only too happy to earn two years fees instead of one (or none) - and of course your creditors would be happy to extend too - but I really think that you should go back as your first point of attack to highlight that you have no equity and you would like to vary the proposal to end after you've made your five years of contributions. Your IP has a duty to put forward any reasonable offer and it's up to the creditors to accept it or reject it (your IP might ask you to pay a variation fee for this if he doesn't think the variation will be accepted). W

Worst that can happen is that your creditors reject the offer - that wont fail your current IVA, you wont have lost anything simply by trying! They may modify your offer which then means it's up to you to accept (a counter offer).

Basically you'll be negotiating, start off by highlighting that it is unfair for you to address equity that does not exist (rejected remortgage offers or valuation etc) and so your IVA should end at five years. You might end up negotiating to extend by six months to a year (which is still slightly unfair but better than two years!) and don't be afraid to ask your IP for the details of his regulatory body if you feel you are not being treated fairly or if they are being unreasonable... You can easily find the regulatory body details anywhere but you want him to know that your looking for him - only if he is being unreasonable or unhelpful obviously!

Negotiate!

patchy987

thanks for that info, i am going to try to push for completion in 12 months but at a slightly higher monthly payment as the only way we are paying this is because hubby is working 60 hours a week to afford it, he needs to get his life back.

its shocking to see the fees the supervisor charges (over £9000)

do you think i am being unrealistic to offer a figure that means the creditors would get 20p in the pound when under the original terms thay would have got 50p

Charco_2

No, offer what is reasonable and affordable! Reasonable is you not having to pay to address equity you don't have!

Insist the IVA is varied to reflect your current position and your offer put forward as you wish not as your IP wants it. Explain everything including no equity and 60hour working patterns...

Worst can happen is your creditors say no so then you try again!

nickybutch

Hi,
I have been reading the past messages and they are interesting.
I am also in an IVA BUT I am 3 months from entering my 4th year.
I was paying my IP 27p to the pound when I started but due to becoming UNEMPLOYED due to health problems, I had asked my IP for a change in my IVA.
They made an IVA Variation. If there is a change in circumstances, this variant would help you out BUT IT MUST BE AGREED WITH YOUR CREDITORS.

My payment in my IVA is NOW down to 23p to the pound and I am paying £ 100 per month ONLY. This was agreed on 9/11/10.
Good Luck in your cases.
Nicky Butch