Almost at the end - now a hitch!

Hi, I'm after some advice. My husband and I have a joint IVA, due to finish the 5 years in July. We had a variation agreed in October 2008 to reduce our payments due to my redundancy and subsequent drop in salary when I found another job. Unfortunately, my redundancy meant we ended up in mortgage arrears and in October 2009 our house was sold as we just couldn't afford to keep it on. Our IP agreed to let us keep £1k of the proceeds to use as a rent deposit, but they got the rest, only about £1800 as there was hardly any equity. We contacted the IP after Christmas as we wanted to make sure July was the last payment and she said that the creditors would have been expecting more from the house sale and that, because the equity was less, they would now only be getting 15p in the pound instead of the 18p they had been expecting. She said she needs to call a creditors meeting in order to have this variation agreed, and if they don't agree then we should offer to pay another 6 months. My question really, is shouldn't this have been covered in the review in July 2010, if not sooner? They had to remove the clause from the Land Registry documents preventing us from selling without their knowledge, and our solicitor paid them directly the money that was left, less the £1k they agreed we could keep so they knew all about what was going on at every stage. We're just gutted that we went into this year thinking this would be the end and now this! Any advice on how to proceed gratefully received, or should we just go with what the IP has suggested and bite the bullet of possibly another 6 months? How likely do you think it is that the creditors would ask for this? We started off paying £565 per month but now only £229. Sorry for rambling, have never posted on a forum before!


  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Well, they have probably waited until now, to see what else changed, for instance if you had worked overtime over the last 15 months then you might have reached the 18p figure without extra payments
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
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