please help we are absolutely passed our wits end

[chris.b]

Hi, I have been on the forum before and received pretty sound advice. We have an IVA which has been running since Oct 2006, we applied for a settlement figure from Clearstart and our IP indicatrd that 22,750 would be acceptable to our creditors. I had a long discussion with our Ip who indicated to me that in our 4th year we would have to remortgage or sell to settle the IVA. By then we will be 60 so getting a mortgage will be very difficult but the IP had no interest in this and basically advised us we would have to sell up and tough basically.

We contacted our BS who are willing to give us a further advance on our mortgage of 30,000 which floored us completely and at a rate of 6.5% to run with the mortgage for the next 9 years. Our Ip has now refused us permission to do this and has stated that we agreed ot remortgage in our 5th year and repay the whole amount outstanding.

My question is this. On the TV in all the adverts it states that up to 75% would be written off, in our case this isnt so and we will repay all the debt plus 11,000 Clearstart fees, plus lose the house, so why didn,t we just go bankrupt. Can someone please help us we are absolutely passed our wits end as this ahs been dragging on for the past 4 months now and we are no nearer to a resolution.

[angela18]

oh Chris that sounds awful I don't know the answer but i'm sure somebody will be along shortly to give you good advise

[jpj]

Hi Chris B
You really need to post on the forum exactly what the wording in your IVA equity release clause says,and also how much equity you have in your property, Im sure the forum experts will be able to help you further then.

[MelanieGiles]

You have a right to apply for your IVA to be varied at any time, and your current IP has no right to deny you this, unless there is a restriction you have agreed to disallowing variations in the first 24 months. Could you confirm whether this is the case, by reference to your proposal document and chairman's report.

[chris.b]

Hi all, thank you for the replies.
I am no further on than before. The first time I contacted the forum was after the debarcle with Hampton Trust, who claimed they could get rid of the IVA, the agent came and took all our papers/ID/Mortgage statement, bank details etc then promptly vanished off the face of the eart.
Since then I have been trying for the past 3 months to get a copy of the Chairmans report which I still dont have. However, the reply from Clearstart now is worded thT "aS PART OF YOUR IVA YOU AGREED TO REMORTGAGE YOUR PROPERTY DURING THE FIFTH YEAR AND TO REPAY THE WHOLE OF THE MORTGAGE FUNDS INTO THE IVA. THIS IS IN ADDITION TO YOUR MONTHLY PAYMENTS. THE FACT IS IT IS THEREFORE NOT POSSIBLE TO RAISE THE MONEY TO SETTLE THE MONTHLY PAYMENTS IUT OF THE PROPERTY".

I can';t get hold of anyone at Clearstart/Free from Debt to give me an answer as someone different says something different each time.

This is a mess, as we asked for a settlement figure in January from Mr Reeves IP at clearstart who knew the money was coming via the BS, now we can't settle early, we now have a bill from the BS for the valuation of 185.00 pounds. What are we to do, because if this is the case then we have been well and truly stuffed............

Initial debt was 77,000
30 p in the pound was agreed
In 5 years the value/equity in the property will be approx 80,000
We will also have paid in 32,992
Plus I anticipate a rise in our paayments this October by an additional 200.00 per month as I have been promoted and my husbands army pension will have gone up so an additional
7,200
Total = 120,192.

Can this be right.

PLEASE PLEASE HELP US. WE DON'T KNOW WHAT TO DO.

[MelanieGiles]

I understand that Clearstart are in the process of ceasing to trade and that their operation is going to come under the umbrella of their parent company, Debt Free Direct. I suggest that you send your IP a personal e-mail asking for his guidance about your dilemma, but you will not be required to pay over more than you actually owe.

[chris.b]

Dear Melanie, thank you for your reply. I have written and emailed with little or no response from my IP. Is it possible to transfer Companies, shouldn'twe have been notified of a change of Compnay.

Also will we have to repay interest and IP charges on top of what we owe, at the end of the IVA.

I have to say that this Forum has given us more advice and hope than any one else especially yourself. many thanks for all your help.

Kindest regards Chrissie x

[ianmillington]

Hi Chrissie

As Melanie has indicated you have a right at any time to ask your Supervisor to propose a variation at any time. The Supervisor can advise you on whether he or she thinks the variation will work, but can't really refuse to put it forward on your behalf.

Whilst there has been (now discredited) advertising of writing off up to 75% of the debt you have to think about what that means. It means anything between nil and 75%, depending upon what you can afford. That is the key, what you can actually afford. So far as the IPs fees are concerned, they come out of the pot, unless you pay in full or something approaching this.

As DFD own Clearstart I suspect that apart from a change of address you might not see any difference. As and when there is solid info available someone will no doubt post it. So far as a variation is concerned, however, it will be difficult for any Supervisor to actively promote and support it if it's not possible to demonstrate that you won't be able to continue making the payments. As a bare minimum there would need to be a review of income and expenditure to show this if you wished to make a full & final offer.

Hope this clarifies things a bit

ian