Full and final ?

[john.hn]

IVA HAS FAILED ,HAVE RECIEVED TERMANTION CERT .IS THERE STIL A LEGAL CHARGE ON PROPERTY,AS NO DOUBT I WILL BE MADE BANKRUPT AND THOUGHT I WOULD PUT HOUSE UP FORSALE,AND SEE IF CREDITORS WIL TAKE A FULL AND FINAL ,INSTEAD OF LOSING MONEY TO O.R

[pixie]

Hi John
Welcome to the forum, If you have enough equity in the property it may be possible to propose a f&f. If you can post some figures such as level of debt and equity one of the experts will be able help.

[john.hn]

Hello pixie,and to the forum,i am a new member to this growing elite group.the way the countrys going ,i am sure the numbers will swell.I am looking for good advice.I won,t bore you with my tale of woe.Just not very good with money or my wifes.me and my wife started iva,s in jan 07 individual ones with P.B recovery ,i wished i had seen this forum first,as they are totally useless.I think they are only after fee,s and do not put your best interests first.I thought we should of been on a joint iva as most of the debts are joint.Anyway i lost my job,after only making 7 payments into iva .informed P.B told them the postion .That we could no longer pay iva,s as servicing are secured lending was more important.8 weeks later i found another job at lowering earnings but at least we can pay are bills and secured loans just and feed the kids ,fell 1 months arrears in mortgage still am takes ages trying to pay arrears when you just about live.Heard nothing from P.B for months until this month when they had the annual meeting ,the outcome was the termination of both iva,s even though no one voted .Have recieved termination certificate.I owed £43.491 my wife owed 33.000 and £20.500 of this joint .but because they individual iva ,s £20.500 comes up twice.ie £43.491+33.000=76.491 but if it were a joint iva all debts pooled together it would read £21.156 lower £55.335 is what we actually owe.my mortgage is £94000 and secured loan 16000 total £110.000 house is worth between 125.000 and 138.000 depending on estate agent so roughly 130000.equity of about £20000 less estate agent fees and relocation costs £16000 left to share about 28 to 30 pence in pound .so do i put the house up forsale,which will happen anyway.BUT has the legal charge come off property now that a termination certificate has been issued ,as i wouldn,t be able to sell with one would i ? should i send a proposal to creditors .As no point in sending one to P.B as they have just sold to some other firm .who now nothing when you phone ,no change there then. or should i not pay the mortgage for 1 month putting me 2 months in arrears and petition for b.r or should i wait for one of the creditors to make us b.r or should i point out that they will get a lower divident if o.r gets in the act.i am sure many people like myself are sick of existing and not living .it would be nice to take the kids swimming or bowling a luxury one cannot afford .a pint would be nice .but hey ho at rock bottom can,t get any lower.all advice welcomed.

[pixie]

we seem to be getting less elite by the day!
As regards how your iva was set up, this does sound about right. A joint iva is basically two individual iva's that are interlocking making one payment for both. A joint debt does need to be included on both as both parties are liable.
One of the experts will be along shortly to answer your queries and point you in the right direction.

[Adam Davies]

Hi
In bankruptcy you will lose the house unless a third party can buy the beneficial interest from the OR.
You could speak to another IP and discuss a possible full and final but I doubt in the current housing climate that you would sell for enough to make this viable.You could look for rented property and stop paying your mortgage to secure this,then petition for bankruptcy.
If you feel that you have enough money left over each month after paying your secured loans and living costs you could look into a Debt Management Plan
Speak with another IP and see what they advise
Regards

[MelanieGiles]

I'm finding your post quite difficult to read, so could you just confirm the following information:-

How much do you owe to creditors?
How much could you afford to pay each month?
How much equity is there in your property?
Do you still want to try an IVA?

If we could just simplify the data you have already provided, then it will be easier to suggest a way forward for you now the original IVA has terminated.

[john.hn]

hi melanie, i owe £43.500 my wife £33.000 we could probably generate about 28pence in the pound on the sale of the house. at the top end of market or 22pence at bottom end of market if we went for quick sale.will the legal charge on the property still be enforce ,now that the iva,s have terminated.

[MelanieGiles]

The legal charge would need to be paid out of the sale proceeds first, so would this affect the amount you could offer to creditors?

[john.hn]

when the iva started we had to sign a RX1 form placing a restriction on the property,the supervisor issued the cert of termination of both iva,s and has closed his file.does that mean the restriction has been lifted .

[Adam Davies]

Hi
Yes

[john.hn]

thanks andy,i wonder why i am recieving large number of phone calls from creditors.I think my next move will to put the house on the market and send letters to mine and wifes creditors of a full and final settlement if they agree.once the house is sold .even in this market should be able to generate no less than 23pence in pound far than they would recieve in b.r

[john.hn]

just thinking about things and need some advice,
if i sent out propsal that i am selling the house due to iva failed ,and would be able to generate x pence in the pound ,and some creditors would accept this and say some would not,i would be back at square one? or should i just petition for br and let the o.r sort it out, thanks

[MelanieGiles]

Why don't you try another IVA on the basis of a full and final settlement - and it beggars belief as to why this sort of offer was not put forward by your IP rather than seeing the arrangement failed.

[john.hn]

i take it there are good ones and bad ones ,i didn,t think at the time we would need to sell up .iva payments were a struggle ,why they included benifits into this propsal is beyond me as working tax credits generally tend to go down not up,and they didn,t allow for any changes in mortgage rate or other bills ,we were iva ,ed down to last fiver with no safety factor included.we have had are cert of termination and ip closed files,take it everything paid into iva is his fees as file is closed.starting to get baliffs letters ,and take ip not intersted in our case anymore.so thought br would be best solution as selling property could take up to a year in current market .how long would creditors wait .

[Rachael24]

I would try another IVA as well. Good luck with everything!