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Toooldforthis1

StepChange_Allen said:

Toooldforthis1 said:

My IVA ended last year.  It's only now that I'm starting to wonder if the mortgage part of the advice provided was actually correct.  I had an interest-only mortgage with no savings plan in place to repay this.  I was advised to change to a part & part mortgage.  The interest-only part still without a payment plan.  I'm now speaking with various mortgage providers and all are questioning why I was advised to only go part & part and not a full repayment mortgage or, at least, begin a suitable savings plan.  The mortgage is due to end in less than 5 years and I am not be able to repay the interest-only part.  My only prospect seems to be to sell the house and down-size.  Is it ever correct to enter into an IVA with such mortgage advice?   I'd very much appreciate your thoughts please.

Hi there

Thanks for posting.

This is a tricky one, as I don't know your full circumstances or why that advice was given to you, but if other mortgage advisors are questioning it now, then it may well not have been right. 

Two things I would say are:

1. A mortgage is always a priority over unsecured debts, and having a part interest only mortgage and doing an IVA perhaps isn't fully prioritising it.

2. At least it isn't if no suitable repayment vehicle is in place to repay the interest only element. I'm reasonably sure that a mortgage advisor that recommends any part of a mortgage be on an interest-only basis should have discussed a suitable repayment vehicle with you.

So, if you feel as though the advice given wasn't accurate or fully explained verbally and in paperwork, you could make a complaint.

Please let us know if you have any further questions.

Best wishes
Allen

Hello Allen
Thanks for such a quick response.
This is more than a little awkward because the IVA was arranged by Stepchange.  I've had no cause to question their advice until now.  The IVA ended in February.  I've been Furloughed since April, when I also hit 60, and so am now looking at all aspects of our finances.  Stepchange were amazingly helpful and non-judgemental about our debt problems.  I was in such a bad state mentally at the time that I would have kicked my granny had they told me to.  So, where do I go from here.....?
Terry

StepChange_Aidan

Toooldforthis1 said:

StepChange_Allen said:

Toooldforthis1 said:

My IVA ended last year.  It's only now that I'm starting to wonder if the mortgage part of the advice provided was actually correct.  I had an interest-only mortgage with no savings plan in place to repay this.  I was advised to change to a part & part mortgage.  The interest-only part still without a payment plan.  I'm now speaking with various mortgage providers and all are questioning why I was advised to only go part & part and not a full repayment mortgage or, at least, begin a suitable savings plan.  The mortgage is due to end in less than 5 years and I am not be able to repay the interest-only part.  My only prospect seems to be to sell the house and down-size.  Is it ever correct to enter into an IVA with such mortgage advice?   I'd very much appreciate your thoughts please.

Hi there

Thanks for posting.

This is a tricky one, as I don't know your full circumstances or why that advice was given to you, but if other mortgage advisors are questioning it now, then it may well not have been right. 

Two things I would say are:

1. A mortgage is always a priority over unsecured debts, and having a part interest only mortgage and doing an IVA perhaps isn't fully prioritising it.

2. At least it isn't if no suitable repayment vehicle is in place to repay the interest only element. I'm reasonably sure that a mortgage advisor that recommends any part of a mortgage be on an interest-only basis should have discussed a suitable repayment vehicle with you.

So, if you feel as though the advice given wasn't accurate or fully explained verbally and in paperwork, you could make a complaint.

Please let us know if you have any further questions.

Best wishes
Allen

Hello Allen
Thanks for such a quick response.
This is more than a little awkward because the IVA was arranged by Stepchange.  I've had no cause to question their advice until now.  The IVA ended in February.  I've been Furloughed since April, when I also hit 60, and so am now looking at all aspects of our finances.  Stepchange were amazingly helpful and non-judgemental about our debt problems.  I was in such a bad state mentally at the time that I would have kicked my granny had they told me to.  So, where do I go from here.....?
Terry

Hi Terry,

I’m sorry to hear about this. I can’t really say why you were advised to change your mortgage without knowing more about your IVA and your specific circumstances. 

I’d recommend getting in touch with our Voluntary Arrangements team, who’ll be able to look into your case and investigate the advice that was given at the time. If you feel that the advice was incorrect or not fully explained, you should make a complaint. 

Our contact details can be found here.

I hope this helps.

Aidan

Toooldforthis1

Hi Aidan
I will take your advice.
Thank you very much for taking the time.
Terry

Worried3648

Good afternoon, 
I have the fee to declare myself bankrupt. I started my application today, unfortunately I don't have my pension details from my previous employer. I have rung to ask for a statement, it can take 40 working days which will take us to Mid March. I am going to be issued with default notices in the imminent future and I can't deal with the thought of bailiffs knocking on my door, I have had two panic attacks this afternoon about it.
Is there anyway I can submit my application without the details? I have the company name and pension Ref number. I only worked there for 7 years so don't imagine it will be a large amount. I obviously will pass the details on as soon as I receive them.
 Thanks in advance 

joe1796

Hi, thanks for your response to my last post.

just touching on a few points I need some further help with.

I was informed when I applied for BR back in December 2019 I would have to pay an IPA. As I mentioned in my original post, I have had numerous issues with the insolvency service. They did not contact me for 6 months, then informed me that due “to an admin error” they had lost my details. They then tried to set up an IPA, but failed to send me the paper work to complete this, this again was “due to an error with our admin and a change in our systems”. 

I was advised by citizens advice to escalate my complaint to the chief exec and ask for the IPA to be cancelled due to the mental strain this has caused on me and my life. The chief exec basically said “I admit we’ve made errors with your details but we’ve offered you £50. I’m now discharged officially from bankruptcy, I have never made an IPA payment and nobody has contacted me to set one up. Where do I stand with this? As I’m 13 months in to this now and to be honest for my mental health I just want it over with. I realise now if I had no have contacted them 6 months ago the likelihood is an IPA would not have been “attempted” to be set up in time. 

Thanks once again for any advice you can give. 

monkeybeaver

Hi, I think I’m going to have to declare myself bankrupt but I’m a bit worried about where I live. I’ve just about cleared all my rent arrears so wouldn’t be including it but am concerned about the OR contacting my landlord and what that might mean. Will the OR definitely contact my landlord? Thanks!

StepChange_Aidan

Worried3648 said:

Good afternoon, 
I have the fee to declare myself bankrupt. I started my application today, unfortunately I don't have my pension details from my previous employer. I have rung to ask for a statement, it can take 40 working days which will take us to Mid March. I am going to be issued with default notices in the imminent future and I can't deal with the thought of bailiffs knocking on my door, I have had two panic attacks this afternoon about it.
Is there anyway I can submit my application without the details? I have the company name and pension Ref number. I only worked there for 7 years so don't imagine it will be a large amount. I obviously will pass the details on as soon as I receive them.
 Thanks in advance 

Hi,

Welcome to the forum.

The Insolvency Service will need the pension details to confirm that it’s an approved scheme and that there aren’t enough savings to clear the debts. You may be able to submit the bankruptcy application with an estimated value, but I’d suggest checking with them first.

Currently the Insolvency Service enquiry line is closed due to Coronavirus, but you can send them a message using the form on their website.

Please try not to worry about receiving a visit from bailiffs. There are several steps between receiving default notice and the debt going to enforcement, which could take months or years. Once your bankruptcy has been approved, you’ll be protected from any further action from the creditors.

I hope this helps.

Aidan

StepChange_Aidan

joe1796 said:

Hi, thanks for your response to my last post.

just touching on a few points I need some further help with.

I was informed when I applied for BR back in December 2019 I would have to pay an IPA. As I mentioned in my original post, I have had numerous issues with the insolvency service. They did not contact me for 6 months, then informed me that due “to an admin error” they had lost my details. They then tried to set up an IPA, but failed to send me the paper work to complete this, this again was “due to an error with our admin and a change in our systems”. 

I was advised by citizens advice to escalate my complaint to the chief exec and ask for the IPA to be cancelled due to the mental strain this has caused on me and my life. The chief exec basically said “I admit we’ve made errors with your details but we’ve offered you £50. I’m now discharged officially from bankruptcy, I have never made an IPA payment and nobody has contacted me to set one up. Where do I stand with this? As I’m 13 months in to this now and to be honest for my mental health I just want it over with. I realise now if I had no have contacted them 6 months ago the likelihood is an IPA would not have been “attempted” to be set up in time. 

Thanks once again for any advice you can give. 

Hi Joe,

I’m sorry to hear that you’ve had a difficult experience with bankruptcy. Hopefully, the fact that you’ve been discharged and not been contacted about an IPA is a good sign.

However, as the OR had tried to set up an IPA during the bankruptcy, and due to the issues you’ve had with details being lost and paperwork not received, I would say that the best thing to do is to contact the OR to confirm exactly where you stand.

Kind regards,

Aidan

StepChange_Aidan

monkeybeaver said:

Hi, I think I’m going to have to declare myself bankrupt but I’m a bit worried about where I live. I’ve just about cleared all my rent arrears so wouldn’t be including it but am concerned about the OR contacting my landlord and what that might mean. Will the OR definitely contact my landlord? Thanks!

Hi,

Welcome to the forum.

If the rent arrears have been cleared by the time you go bankrupt, the OR is less likely to contact your landlord, but I can’t guarantee that they won’t.

If you're renting from a private landlord, there may be an insolvency clause which can end the tenancy if you go bankrupt. This doesn’t necessarily mean you’ll be evicted, but I would recommend checking your tenancy agreement first.

There’s some more information on how bankruptcy can affect your home here.

I hope this helps.

Aidan

Worried3648

StepChange_Aidan said:

Worried3648 said:

Good afternoon, 
I have the fee to declare myself bankrupt. I started my application today, unfortunately I don't have my pension details from my previous employer. I have rung to ask for a statement, it can take 40 working days which will take us to Mid March. I am going to be issued with default notices in the imminent future and I can't deal with the thought of bailiffs knocking on my door, I have had two panic attacks this afternoon about it.
Is there anyway I can submit my application without the details? I have the company name and pension Ref number. I only worked there for 7 years so don't imagine it will be a large amount. I obviously will pass the details on as soon as I receive them.
 Thanks in advance 

Hi,

Welcome to the forum.

The Insolvency Service will need the pension details to confirm that it’s an approved scheme and that there aren’t enough savings to clear the debts. You may be able to submit the bankruptcy application with an estimated value, but I’d suggest checking with them first.

Currently the Insolvency Service enquiry line is closed due to Coronavirus, but you can

Please try not to worry about receiving a visit from bailiffs. There are several steps between receiving default notice and the debt going to enforcement, which could take months or years. Once your bankruptcy has been approved, you’ll be protected from any further action from the creditors.

I hope this helps.

Aidan

Thanks Aidan. I filled out the form yesterday and got a reply this morning. It said that if I can estimate that is fine because the O. R can request further information from the company if needed.