We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Not sure where to turn

Jamie_Smith
Posts: 7 Forumite
Good Evening.
I'm looking for a corner to turn for advice as no one is allowed to give me any.
OK here it is.
Me and my wife unfortunately got into debt of a region of 28,000.
When i spoke to someone for advice about debt management they directed me to a Company called Price Sterling.
After going through all of the intro things of finalising how much income/expend we had, the creditors had agreed a monthly payment of £250 / month for 60 months. There was a conversation about releasing equity from the house after the 5 years, to reclaim the remainder of the debt. Well there wasnt a risk of that as we had a mortgage of £118k and they valued it at £140k.
Obviously we was aware if income was to rise / fall we was to contact them and arrange changes etc etc.
I had a letter from them 2 weeks ago claiming they was going to direct us to a PPR reclaim company and take 100% of the claim for the creditors due to it being classed as a windfall.
I then looked at alternatives of coming out for the IVA as we had potential of larger income, being able to afford to repay creditors.
As i am aware there are 2 options. Cancel the IVA = Fail which means large change of bankruptcy or 2 = settle.
So i made an offer under the following pretence.
My payments a month = £270 (total of £16k after months)
after 18 months we have paid Just short of £5
So i made an offer of £6000, which was rejected due to the IP stating that the supervisor had to take into account £8000 to be taken from the equity of the property (Which wasnt agreed at the start... well certainly not a figure.. so not sure where that came from)
Then i made an offer of £14000, now the supervisor has accepted the pretense of the offer but will still look to claim all PPI that maybe available to me.
I simply do not know where to turn, As i know the Equity is in the house now. Can i cancel, knowing i can repay the creditors back myself, or do i not have a leg to stand on.???
I'm looking for a corner to turn for advice as no one is allowed to give me any.
OK here it is.
Me and my wife unfortunately got into debt of a region of 28,000.
When i spoke to someone for advice about debt management they directed me to a Company called Price Sterling.
After going through all of the intro things of finalising how much income/expend we had, the creditors had agreed a monthly payment of £250 / month for 60 months. There was a conversation about releasing equity from the house after the 5 years, to reclaim the remainder of the debt. Well there wasnt a risk of that as we had a mortgage of £118k and they valued it at £140k.
Obviously we was aware if income was to rise / fall we was to contact them and arrange changes etc etc.
I had a letter from them 2 weeks ago claiming they was going to direct us to a PPR reclaim company and take 100% of the claim for the creditors due to it being classed as a windfall.
I then looked at alternatives of coming out for the IVA as we had potential of larger income, being able to afford to repay creditors.
As i am aware there are 2 options. Cancel the IVA = Fail which means large change of bankruptcy or 2 = settle.
So i made an offer under the following pretence.
My payments a month = £270 (total of £16k after months)
after 18 months we have paid Just short of £5
So i made an offer of £6000, which was rejected due to the IP stating that the supervisor had to take into account £8000 to be taken from the equity of the property (Which wasnt agreed at the start... well certainly not a figure.. so not sure where that came from)
Then i made an offer of £14000, now the supervisor has accepted the pretense of the offer but will still look to claim all PPI that maybe available to me.
I simply do not know where to turn, As i know the Equity is in the house now. Can i cancel, knowing i can repay the creditors back myself, or do i not have a leg to stand on.???
0
Comments
-
Dump this company as soon as you are able and contact a free debt management service like stepchange or payplan. Ring one of them for advice tomorrow.Christmas 2020 £109
I love my dmp started in Nov 13 with SC. Self Managed 2016 57% done
£60062/25384.84 - 13222.60k UE
MY DIARY http://forums.moneysavingexpert.com/showthread.php?t=47686850 -
Hi Jamie. I don't understand your situation, but as Puzzcat says, get rid of the company, they are tying you in knots, and probably making a nice profit from you.
Start again and go to a FREE NO FEE debt busting charity. Step Change has excellent reports.
http://www.stepchange.org/
or
Christians Against Poverty, you don't have to be a Christian.
https://www.capuk.org/
or
Payplan
http://www.payplan.com/
Also read Martin't Debt Problem page.
http://www.moneysavingexpert.com/loans/debt-help-plan
and breath. Don't get your knickers in a twist, it can be sorted.
Best of luck
IlonaI love skip diving.0 -
Hi Jamie
Unfortunately it's not a question of simply "cancelling" the IVA. It is a legally binding agreement and the insolvency practitioner (Price Sterling) would have to formally declare it "failed" for you to be released from its obligations.
I am concerned that the implications of the IVA may not have been fully explained to you at the outset. The question of the equity in your home warranted more than a mere "conversation" on the part of the insolvency practitioner.
As such, I would strongly recommend that you speak directly to one of the free advice organisations listed above, or indeed to us. You may need more detailed advice than is possible on a forum.
Regards
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
@Puzzcat and Ilona - I'm almost certain that the OP can't just 'dump' the company. He's in an IVA, not a DMP.AD March 2014
rebuilding my life :grinheart0 -
Thanks woodformoretrees, I just read that in the post before yours. Always useful to know.Christmas 2020 £109
I love my dmp started in Nov 13 with SC. Self Managed 2016 57% done
£60062/25384.84 - 13222.60k UE
MY DIARY http://forums.moneysavingexpert.com/showthread.php?t=47686850 -
What is the worse thing that can happen to the OP ?
I hope there is an option for them to get out of it safely.0 -
What is the worse thing that can happen to the OP ?
QUOTE]
Bankruptcy and loss of his home, that's what, you need to think about this very carefully OP as National debtline says, you cant just walk away from an IVA without serious repercussions, releasing equity in year five of an IVA is par for the course when you have equity in your home, all this should of been explained to you before you signed on the dotted line, they will only do this if there is sufficient equity at the time though, do you have the £14000 without the need to remortgage ? because now you are on the insolvency register, it may be difficult to obtain a remortgage at all, you need to be sure of your situation before you do anything, as regards the PPI, again, that's par for the course as well and can drag on longer than the IVA in some cases.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
OK quick update.. The family member who offered the 6k, and then offered it upto 14k has now decided to up the offer to get out of the IVA.
When i offered the 14k The IP was happy to accept the offer on the pretense of the PPI investigation still being enforced, and as im not prepared to allow that, I rang them and offered 21k to fulfill the full amount of the Debt, but as he stated although that is 100p to the £1 there is still the consideration of the IP fee's... I feel this IVA was really pointless as i am paying back the full debt (which i kinda agree with) but still feel that the IVA has been mis-sold to some degree. Or am i being greedy? He has although stated that, he will speak to the IP supervisor to see what settlement offer would be needed to relinquish the PPI investigation.0 -
Ok.. after some phone tennis the IP has agreed to introduce a settlement figure of £21,000, but i need to write a letter stating a reason on why i shouldnt need to investigate PPI for the creditors. Whats the best way to word the letter? obviously I want to be able to claim the PPI in a few years when the IVA is settled and in the past.
Advice on key Phrases?0 -
Even if you do want to complain about the sale of PPI in the future, the companies involved can keep any redress up to the amount you have defaulted, or had written off.
It doesn't mean that once you complain down the line all the redress comes to you.
It can still be kept by the companies involved.Non me fac calcitrare tuum culi0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards