Myself and wife are with an IVA company (a well known one on here) that just keeps changing the rules and bending the truth, basicly one of our creditors is my wifes father, he has a secured loan out on his house for us and they first said we can class him as a creditor and continue paying him as normal but a year on they have decided they didn't say that at all and he would need to wait 14 months for a payment which of cause is no good as he would lose his house as was made redundant, and they originaly said the fees are recovered from the other side and we then find out it's actually our first 3 payments is there fee???????
Does anyone know if we can change companies and what would happen to our money we have already paid?
Hi Carl - sorry you're having problems. Its nearly impossible to change Ip's but not impossible to resolve issues.
If your Father in law is included in the IVA then he will be treated the same as the other creditors. I know some IVA companies only pass the payments on after the 1st year has passed - some later. The IP's fees are deducted from the payments you make into an IVA - so in essence the creditors are paying for them, its taken out before they get to see any money.
Have you actually had an IVA approved? If not you can switch companies but if so the IVA would run based on what was in the proposal or requested by creditors. The rules do not change during an IVA for no reason at all.
I would rather not say what company on here sas they regularly post on here, but yes we have had it approved and had it for 1 year and they took the 1st 3 payments for themselves straight away, they owner of the company said we can pay him as normal.
the iva includes father in law and in proposal it says he is a creditor nothing else, I guess we will have to stop struggling to pay him and he will lose his house, but surely that is irresponsible of the company?
As far as I can understand it, your father in law is listed as a creditor so thereby will be treated like all other creditors.
Also I believe that many company's ensure that their IP is paid first and foremost than sometime down the line creditors are paid their dues without favour for any particular one.
I hope you manage to get this sorted out, personally I would read my agreement and speak with my IP.
I have had a debt I owed to my mother included in the IVA and she was allowed to vote at the creditors meeting the sam as all creditors. S he will only get back the same dividend as the other creditors which is about 22p in the £
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
Carl.Pearce wrote:
the iva includes father in law and in proposal it says he is a creditor nothing else, I guess we will have to stop struggling to pay him and he will lose his house, but surely that is irresponsible of the company?
Do you have property yourself with equity in it??
Look into whether going bankrupt is an option.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi
I would have thought that you could pay your father each month out of any savings that you can make from your expenditure allowance or from your share of any overtime. Although in a sense this is preferring one creditor over your others you are technically free to use that saved money as you see fit, although best to run this past your IP though to be sure.
All IPs will recover some of their fees with the first few months payments, and so they should as they have done considerable work with no income whatsoever
Regards
andydavie wrote:
Hi
I would have thought that you could pay your father each month out of any savings that you can make from your expenditure allowance or from your share of any overtime. Although in a sense this is preferring one creditor over your others you are free to use that saved money as you see fit, best to run this past your IP though to be sure
All IPs will recover some of their fees with the first few months payments, and so they should as they have done considerable work with no income whatsoever
Regards
Sorry Andy to ask but I am a bit confused. You mention that the poster the father back through any savings from expenditure. I just can't see how anybody could make savings enough to pay for a secured loan whilst in an IVA. I am sure I am just being a bit thick but would be grateful to know where I am confused.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
You should contact your IP directly to discuss this matter. The IP will have copies of your IVA proposal, and detailed meeting notes signed by you confirming all discussions which were held with your prior to the presentation of your proposals, which will confirm your then understanding of the treatment of this loan, and what was actually agreed by your creditors.
It would be extremely unusual for you to be permitted to repay an associated creditor in preference to your other creditors, and this would have to be covered within the IVA proposal and specifically agreed by creditors.
If you are now to consider bankruptcy proceedings, and are seen to have been paying one of your creditors outside the IVA without agreement, then this will very likely be treated as a preference and your father-in-law may well be asked to repay the money.
As you appear to be angry about the way your case has been handled, I suggest that you write to your IP and detail the issues currently concerning you so that they can be dealt with in a professional and appropriate manner.
