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dailyjoint

Hi All,


My first ever post, so go easy on me please J

A little history.

Husband and I managed to get ourselves into quite a lot of financial trouble a few years also. We had joint debt of a Mortgage £153,000 and a Picture Loan secured against the house of £70,900.

I had unsecured personal debt of £25,000 and Husband had £80,000 of unsecured debt.

I declared myself bankrupt in Dec’ 2007. Husband went into a full and final settlement IVA.

We managed to sell the house (April 2008) for £180,000, leaving a (Picture) second charge shortfall of £43,900.

This is where it gets interesting. My Husband dealt with this as he was in the process of securing his Full and Final IVA. Picture agreed, via email to allowing Husband to carry on paying the Picture loan as an unsecured personal loan. The only paperwork we have is the original Picture loan agreement, which is signed by both of us and dated 2005. We have made all the payments since April 2008.

Question?

Is this agreement technically enforceable?

We’ve searched the internet looking for information along this theme, but as yet we can’t find an answer. Anybody have any thoughts on this.


Ta

Daily

debtinfo

sorry not following, what makes you think that it is not

dailyjoint

Just a couple of things that we've thought off over the past month or so.

The query mainly stems from:

• the unsecure debt is over £25,000 (which I thought was the maximum) our amount is £18,900 more than £25,000

• we have no paperwork (only the original agreement for the secured loan) plus an email when completing the house sale (no signed paperwork) however, we have been paying the repayment since April 2008.

The only reason we’re asking the question, is because, I spoke to Picture to obtain a settlement figure and they were querying the fact that the loan was unsecured. Guy on the phone was confused as they don’t deal with unsecured loans. (no note on the file either) We then received paperwork, stating that our complaint was being investigated. We never complained.

Just curious to see other peoples thoughts on it.

Note: We don't intend on not paying it back, it just was interesting the reaction we had on the phone from the Picture Representative.

Ineedaname

As the house is now sold the secured loan becomes unsecured. I don't know how things work with an IVA but there might be a case for renegotiating to include the new debt in the IVA agreement. I'm not sure what you mean about a maximum of £25k though?

Have you tried posting on the IVA board to see if you get more replies from members who understand IVAs better?

dojoman

Did you sign anything after the house was sold?

dailyjoint

No we never signed anything.

Penelope_Penguin

dailyjoint wrote: »

Husband and I managed to get ourselves into quite a lot of financial trouble a few years also. We had joint debt of a Mortgage £153,000 and a Picture Loan secured against the house of £70,900.

Husband had £80,000 of unsecured debt. Husband went into a full and final settlement IVA.

We managed to sell the house (April 2008) for £180,000, leaving a (Picture) second charge shortfall of £43,900.

This is where it gets interesting. My Husband dealt with this as he was in the process of securing his Full and Final IVA. Picture agreed, via email to allowing Husband to carry on paying the Picture loan as an unsecured personal loan. The only paperwork we have is the original Picture loan agreement, which is signed by both of us and dated 2005. We have made all the payments since April 2008.

Question?

Is this agreement technically enforceable?

Hello! I'm puzzled by this. Did your DH enter into his IVA? Why did he leave the Picture loan out; why not include it in the IVA?

You say you've been making payments to the loan since 2008, so accept that you owe it, so why do you ask if it's enforceable?

dailyjoint wrote: »

• we have no paperwork (only the original agreement for the secured loan) plus an email when completing the house sale (no signed paperwork) however, we have been paying the repayment since April 2008.

Note: We don't intend on not paying it back, it just was interesting the reaction we had on the phone from the Picture Representative.

Why are you planning stopping payments now?

debt_doctor

Hi,

Iam a little confused why you (he) would enter in to a full and final IVA that would still leave substantial unsecured shortfall debt to deal with. - Is this what happened?

Unless something was done to the contrary, a 'secured' debt, ie 'Picture' would automatically become an unsecured shortfall debt without any further agreement following the sale of the house.

Was there any reason for such a (seemingly) bizzare arrangement?

DD