Do I lose my house if my IVA fails??

ukdynamite

Hi, basically after a long time unemployed defering my IVA I started work and making payments. Unfortunately I missed last months payment and they've failed my IVA even though I offered to pay the monthly payment and set up a direct debit so as not to miss anymore payments.
The big question I need to ask is if my IVA fails will I lose my house? The mortgage is 127k and it's worth 130k so after fee's there's no equity in it anymore.

FoggyBrain_2

Hi. If the IVA fails, you are just back to square one -- at the moment no-one has any call over the house from the IVA perspective.

Has the IVA actually failed, or have you been issued with a Notice of Breach ? They shouldn't fail on one missed payment (normally allowed three).

ukdynamite

Thanks 4the reply Foggy Brain! I have just been issued with a letter stating the IVA has failed and the ammount of arrears on it, and told that there is no point in making any further payments because it has failed. I have missed other payments during the term of the agreement as I was made redundant and without work for 2yrs. Whats my next step? Citizens advice??

Firefox99

Hi,

You can apply for a new IVA and as your circumstances have changed you should speak to some providers about this and get some advice and definitely talk to the CAB. As regards your property a restriction is placed upon it for the term of an IVA, this is to prevent you selling it or using it as security during the term of the arrangement. If your creditors decided to petition for your bankruptcy then your assets (including property) could be affected. I would suggest this is probably unlikely at this stage but you shouldn't delay in getting advice, if your creditors have agreed to an IVA in the past its generally because there would be no benefit for them in your going bankrupt and an IVA is their best option. A DMP might also be an option but I don't really have any experience of them, perhaps someone else on here could advise on this.

let us know how you get on

Best of luck

FoggyBrain_2

Might I ask who you were with UKD ? They seem particularly unhelpful ! As Firefox says, there is no reason you cannot start another IVA. I would pop over to https://www.iva.com and chat to a few of the firms represented there. Get some free, specific, advice from a couple of the companies and find one who might be a little more supportive. They will discuss all solutions with you, not just IVA's.

ukdynamite

Thanks, I will make an apointment with CAB and look into getting another IVA I think as I don't want to go bankrupt! The IVA was with Payplan. A Wayne Kettle was apointed my case officer a couple of months ago, the previous case officer was very understanding of my circumstances. This Wayne hasn't even tried speaking to me on the phone and never gave me any warning that my IVA would fail if I was late making a payment
If I start another IVA do I lose all the payments I've currently made??

FoggyBrain_2

The chances are what you have already paid will be swallowed up in Payplans fees, so you will be back to square one.