Advisor tells me earlier advice was wrong

[Rachel.1]

my iva is up next july,i am currently on maternity leave and my advisor told me a amount to pay each month whilst on mat leave.i now have another idvisor telling me this was wrong and i have not been paying enough and am therfore in arrears.if we up the monthly payment by £94 per month until july this would pay off any overtime arears ect,however we now have 30 days to produce proof of income ect bank statements ect otherwise the iva will fail..is this aloud and if the iva fails will we loose our home or have to go onto debt managment.any help will be greatly apreciated as with 2 children i really cant loose our home thankyou.

[liamjames]

Hi Rachel and welcome!

It sounds like a nasty communication problem - that advisor really shouldn't have told you to reduce your payment unless it was allowed under the terms of your IVA.

Moving forward, you should give your IP all the information he's asking for and ask him to write to your creditors and explain the situation. It sounds like that's what he intends to do anyway, but phone to make sure.

If your IVA fails your IP is unlikely to make you bankrupt, so it will most likely be your choice whether to go bankrupt or go on a debt management plan.

[Rachel.1]

that makes me feel a little better its just going to be hard only having 30 days getting all paperwork together,im more than willing to go on debt managment if needs be but would we loose or home?

[liamjames]

If your IVA completes next July then you shouldn't be worrying about debt management quite yet!

As long as you keep up to date on your secured payments / mortgage then your home would most likely be safe on a debt management plan- talk to your IP though, as they will already know the terms of your IVA and if anything is secured against your property.

It sounds like you should phone your IP anyway, just to find out exactly what they need and the quickest way to get them the information. Explain what the advisor told you and insist that they write to your creditors.

Which company are you with, if you don't mind me asking? We might be able to put you in touch with someone helpful!

[Rachel.1]

we are with freeman jones.the amount of paper work they want is not much but will probably take more than 30 days to organise.i feel like screaming we have come this far and now were at the last hurdle its going wrong,they also want a fee of £8000 at the end of it and if we dont have it due to negative equity we have to stay on the iva for another 12 months which i dont want to do tbh.can they make us pay such a large amount ??

[Broke of London]

If you have an equity clause in your proposal and equity in your property you will be asked for payments in lieu of equity if you cannot remortgage. If you can remortgage or there is no equity in your property you iva will conclude in July as planned. Was the equity clause explained to you? I wonder because it is not a fee but is used to improve your return to creditors. Good luck x

[Rachel.1]

they always said if there was no equity in the property which there is not it would be up and that would be that now they want to extend the iva for 12 months after that.

[liamjames]

I've seen some recent posters who are with Freeman Jones, so hopefully they can put you in touch with someone useful there.

Broke is right, but if that £8,000 was included in your proposal and used to calculate the dividend then you may still need to raise additional funds by making extra payments. You really need to talk to your IP, or a manager at Freeman Jones if you can't get through. It sounds like some of the advisors you've spoken to have been quite poor, and you should demand something in writing.

[Rachel.1]

thank you so much for your help.my biggest fear is obviously the house.we have spoke with them today and we have offered to pay £314.00 instead of the £220.00 to clear some arrears so that should go in our favour surley when he meets our creditors in december.we have never missed a mortgage payment either so hopefully the house will be safe unless we declare bankrupt.?

[baldy]

In our proposal, if we cannot release any equity which might be in our house at year 4, something which we feel probley wont happen!, we will have to pay an extra 12 payments.
I got the impression that seems to be fairly standard regarding anybody who has a house.

Hope you get everything sorted im sure they will sort it out for you.
Baldy[:)]

[Rachel.1]

i just want it done with now if we can get the fee we will be done in july n stress free hopefully.i tell you hat though i will never ever have another loan or credit card ect and my kids will be taught to save and if you want anything dont ever get credit its causes nothing but problems.

[MelanieGiles]

It is usually better to get things like this confirmed in writing. Whilst firms and their personnel should be consistent in the advice given to clients, we often see people suffering as a result of personnel changes on the forum.

[Rachel.1]

to be honest our marrige is suffering what would happen if we split up

[leaKybrain]

If you are so close to the end surely it is better for them to accept these new payments.

There was a question earlier in the month about splitting...try a search cos I can't rem the answers. I think you would both still be liable for the remainder of the payments.

[MelanieGiles]

Is your marriage suffering as a result of the IVA Rachel? If so, you really do need to consider which one is more important. A good marriage will hopefully last a lifetime, so don't let having a few debts tear you both apart - especially as you are so close to concluding the voluntary arrangements.