IVA - Shared Ownership

hoskins96

Hi,
I’m currently in an IVA which started December 2020 the debt that was written off was loans and credit cards nothing from late rental payments etc. 

Me and My partner possibly have a chance at applying for a shared ownership home which is currently in early stages of development. 

From what I have read online due to my IVA the deposit will have to come from my partner or a third party which it will and the company my IVA is with will have to agree. 

Will having an IVA effect my chances of being excepted for a shared ownership mortgage and will it mean we need to pay a considerable amount more for the deposit instead of the 5% of the share we wish to own? 

I understand the mortgages at the moment are very up and down but this is looking 18 months to 2 years down the line so I will be 3.5-4 years into my IVA.  

sourcrates

Moving into property ownership whilst subject to the terms of an IVA would not be the best idea.

It would break the terms of your arrangement for starters, as you cannot take out credit of more than £500 without permission from your IP, which is unlikely to be forthcoming.

flipflopflo

Can I ask how much your debt was? What is it now? What made you go for anIVA in the first place? Who is it with and who did you take advice from?

hoskins96

flipflopflo said:

Can I ask how much your debt was? What is it now? What made you go for anIVA in the first place? Who is it with and who did you take advice from?

My debt was around £8,000 I was paying £350-£400 a month on repayments to pay it off quickly but was having to take payment holidays and use credit cards. I can’t remember who I took the advice from but my IVA is with Bennet Jones. 

So we have a family member who can help us with a 5% deposit which I know would have to be ‘gifted to my partner’ as the IVA is solely in my name. We would be able to afford the monthly rental/mortgage payments as the amount we are looking at is what we already pay in rent. 

Where is the best place to get advice from regarding the situation? I know it is 12-18 months away but as I know it’s a tricky situation

sourcrates

hoskins96 said:

flipflopflo said:

Can I ask how much your debt was? What is it now? What made you go for anIVA in the first place? Who is it with and who did you take advice from?

My debt was around £8,000 I was paying £350-£400 a month on repayments to pay it off quickly but was having to take payment holidays and use credit cards. I can’t remember who I took the advice from but my IVA is with Bennet Jones. 

So we have a family member who can help us with a 5% deposit which I know would have to be ‘gifted to my partner’ as the IVA is solely in my name. We would be able to afford the monthly rental/mortgage payments as the amount we are looking at is what we already pay in rent. 

Where is the best place to get advice from regarding the situation? I know it is 12-18 months away but as I know it’s a tricky situation

You entered an IVA for £8000 !!!!!

Let me just explain who an IVA is suitable for.

An IVA is a form of light bankruptcy for those who have an asset such as a house to protect, and so cannot go bankrupt.
They are not usually suitable for anyone else.

Although there are no set min/max debt levels for IVA`s, they only really work when your debt is 30k and upwards, and your disposable income is over £75.

Basically, you should not be in an IVA, you should never have entered an IVA, and the salesperson that sold you that IVA should be locked up, yet another shambolic example of mis-selling to someone who is wholly unsuitable for this type of arrangement.

I`m sorry but you were very badly advised here, debt management or a debt relief order would have suited you much better, but you made the error of speaking to a commercial company that ironically sells IVA`s, so you can pretty much guess what they would recommend for you.

Your actual debt may now have risen, this is because of the level of fee`s charged by your IP to manage your arrangement, they can be quite high, so the last two years, you will maybe just about have paid the fee`s, but your initial 8k debt will not yet have been touched, so your creditors most likely won`t have had any disbursement as yet.

My advice would be to ditch the IVA and agree debt management terms once the dust has settled, then the mortgage problem solves itself, and you are free to move on.

hoskins96

sourcrates said:

hoskins96 said:

flipflopflo said:

Can I ask how much your debt was? What is it now? What made you go for anIVA in the first place? Who is it with and who did you take advice from?

My debt was around £8,000 I was paying £350-£400 a month on repayments to pay it off quickly but was having to take payment holidays and use credit cards. I can’t remember who I took the advice from but my IVA is with Bennet Jones. 

So we have a family member who can help us with a 5% deposit which I know would have to be ‘gifted to my partner’ as the IVA is solely in my name. We would be able to afford the monthly rental/mortgage payments as the amount we are looking at is what we already pay in rent. 

Where is the best place to get advice from regarding the situation? I know it is 12-18 months away but as I know it’s a tricky situation

You entered an IVA for £8000 !!!!!

Let me just explain who an IVA is suitable for.

An IVA is a form of light bankruptcy for those who have an asset such as a house to protect, and so cannot go bankrupt.
They are not usually suitable for anyone else.

Although there are no set min/max debt levels for IVA`s, they only really work when your debt is 30k and upwards, and your disposable income is over £75.

Basically, you should not be in an IVA, you should never have entered an IVA, and the salesperson that sold you that IVA should be locked up, yet another shambolic example of mis-selling to someone who is wholly unsuitable for this type of arrangement.

I`m sorry but you were very badly advised here, debt management or a debt relief order would have suited you much better, but you made the error of speaking to a commercial company that ironically sells IVA`s, so you can pretty much guess what they would recommend for you.

Your actual debt may now have risen, this is because of the level of fee`s charged by your IP to manage your arrangement, they can be quite high, so the last two years, you will maybe just about have paid the fee`s, but your initial 8k debt will not yet have been touched, so your creditors most likely won`t have had any disbursement as yet.

My advice would be to ditch the IVA and agree debt management terms once the dust has settled, then the mortgage problem solves itself, and you are free to move on.

How can I ditch the IVA? I was under the impression i had to see the full term out or pay off all owed debt. 

I’ve found the paper work and it was £8,600 
I believe it was a IVA company that I first spoke to I wasn’t 100% on that company but found another company I was already sold on the idea of a IVA as I had just lost my Job and my partner was 6-7 months pregnant so I was worried where I’d find £300+ a month to pay off debts. 

Would this be an easy process to ditch the IVA? 

fatbelly

Based on experience that I've posted about recently, it will take six months to get the IVA terminated if you stopped paying today and you will find that all your payments so far will have gone to the Insolvency Practitioner in fees.

The creditors will have received no payment..

sourcrates

hoskins96 said:

How can I ditch the IVA? I was under the impression i had to see the full term out or pay off all owed debt. 

Would this be an easy process to ditch the IVA? 

Yes, a very easy process indeed, you just stop paying it, can`t get much easier than that.

Honestly, you were given really bad advice here, it`s not your fault, you were not to know, you can continue as you are if you prefer, or let the IVA fail, and pay it off by a DMP, which is what you should have opted for in the first place.

You see if debts become unaffordable, all you have to do is inform your creditors and they will let you make reduced payments, even if it`s only £1 a month, most are quite agreeable, the mistake is to enter an arrangement that is wholly unsuitable for you, it`s your decision, if you want to go ahead with your plans then failing your IVA would make it possible.

sammyjammy

sourcrates said:

hoskins96 said:

flipflopflo said:

Can I ask how much your debt was? What is it now? What made you go for anIVA in the first place? Who is it with and who did you take advice from?

My debt was around £8,000 I was paying £350-£400 a month on repayments to pay it off quickly but was having to take payment holidays and use credit cards. I can’t remember who I took the advice from but my IVA is with Bennet Jones. 

So we have a family member who can help us with a 5% deposit which I know would have to be ‘gifted to my partner’ as the IVA is solely in my name. We would be able to afford the monthly rental/mortgage payments as the amount we are looking at is what we already pay in rent. 

Where is the best place to get advice from regarding the situation? I know it is 12-18 months away but as I know it’s a tricky situation

You entered an IVA for £8000 !!!!!

Let me just explain who an IVA is suitable for.

An IVA is a form of light bankruptcy for those who have an asset such as a house to protect, and so cannot go bankrupt.
They are not usually suitable for anyone else.

Although there are no set min/max debt levels for IVA`s, they only really work when your debt is 30k and upwards, and your disposable income is over £75.

Basically, you should not be in an IVA, you should never have entered an IVA, and the salesperson that sold you that IVA should be locked up, yet another shambolic example of mis-selling to someone who is wholly unsuitable for this type of arrangement.

I`m sorry but you were very badly advised here, debt management or a debt relief order would have suited you much better, but you made the error of speaking to a commercial company that ironically sells IVA`s, so you can pretty much guess what they would recommend for you.

Your actual debt may now have risen, this is because of the level of fee`s charged by your IP to manage your arrangement, they can be quite high, so the last two years, you will maybe just about have paid the fee`s, but your initial 8k debt will not yet have been touched, so your creditors most likely won`t have had any disbursement as yet.

My advice would be to ditch the IVA and agree debt management terms once the dust has settled, then the mortgage problem solves itself, and you are free to move on.

Definitely one of the worst examples we have seen here, I wonder what makes creditors sign up to the IVAs or do they not see the total debts?

sammyjammy

hoskins96 said:

How can I ditch the IVA? I was under the impression i had to see the full term out or pay off all owed debt. 

I’ve found the paper work and it was £8,600 
I believe it was a IVA company that I first spoke to I wasn’t 100% on that company but found another company I was already sold on the idea of a IVA as I had just lost my Job and my partner was 6-7 months pregnant so I was worried where I’d find £300+ a month to pay off debts. 

Would this be an easy process to ditch the IVA? 

Sorry if I missed it, how much have you been paying each month?