Settle IVA early Help

stresseddan

My iva commenced in September 2011 with RSM Tenon and was then passed to Grant Thornton. I have two properties both with restrictions on title deeds in Favour of RSM Tenon. Property one is under offer to sell at £525000 with a mortgage of £338000. Property two is on the market for £390000 with a mortgage of £212000 but is in a bad state of repair due to rogue tenants! (Court battles for two years, absolute nightmare, another story!)

My sole income is the rental income from the 2nd property and my wife worked. We are due to have a second baby so my wife will not be returning to work. There is also massive tension and talk of a split because of my IVA. They were my debts before we were married and she has contributed massively over the last 5 years regarding the IVA payments. I being unaware of the restriction have put house one on the market and have received an offer of £525000 which I accepted. It was at this point the conveyancer picked up the restriction on the title deed. Both properties also have a charge on them for £110000.

From what I have read on various forums so far, Do Not Do anything until negotiating with your IP. We are in a chain and do not want to delay the sale as if we don't sell, we will be in danger of loosing both properties!!

There will be no chance of getting a remortgage with my credit rating and my wife leaving work. So without doing anything my IVA would run for another 12 months.

In selling house one and paying off the mortgage, estate agent fees, sollicitor fees and the charge would leave me with circa £65000. Not enough to buy another house, so maybe try to pay this towards the mortgage on property two. Therefore reducing it by the above amount. I simply don't know what to do as if we just carry on we won't be able to maintain our payments to Grant Thornton of £300 pcm.
I presume the restriction on the title deed originally with RSM Tenon will have passed to GT.

I have read cases that maybe making an offer of £3600 which would equate to the additional 12 months payments as Full and Final settlement might get them to lift the restriction. Even if this does work we will be living in a house that is in a state of disrepair and would still struggle to make ends meet.

I have also read that GT are an absolute nightmare to deal with therefore any advice or plan of action will be greatly appreciated. My Sollicitor regarding the sale is awaiting my response!

Many thanks

National_Debtline

Hi Dan and welcome to the forum.


In order to settle your IVA and complete it, RSM Tenon will (almost certainly) want a sum large enough to settle all of their costs plus 100% of what you owed the creditors in your IVA. Really, you need to establish from them what this settlement figure is before proceeding.


Does the charge of £110K refer to something/someone other than RSM Tenon?


Dennis
@natdebtline

mwarby

Full and finals at less than 100% tend to be due to a change of circumstances (for the worse).

In your case as you have equity (which the IVA would look to use anyway), the remaining repayments is unlikely to be enough

As others have said you'll be looking at 100% of the debts plus IP fees and maybe statutory interest (although this is less common).