Picture this….

dailyjoint

Hi All,

My first ever post, so go easy on me please J
I've posted this on the Bankrupty Forum, but thought it may be better on the IVA Forum.
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

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