Why is my I.P threatening to petition for my bankruptcy after the fifth year of my IVA because I cannot remortgage to release my equity even though I have fully complied with my IVA agreement, he is not willing to put forward a twelve month extension in lieu of equity as this he says is not substantial enough . Is this a normal practice , if so why would anybody enter into an IVA . If I had gone bankrupt five years ago I would be free to start again in less than a year but now I am facing a further seven years of a poor credit file.
Have you asked him where he gets his authority from Wayne? There is no such thing as normal practice with an IVA - the terms of that individual contract prevail, and he should show you where it gives him this power in the proposal documents.
I think the authority comes from the modifications issued to our arrangement which stated that if we could not raise equity via a remortgage in the fifth year then the Supervisor should hold a variation meeting to discuss our alternative proposal. Obviously not wish to propose this. It is the IP who wants to put it forward. It does not say bankruptcy. Should be an alternative proposal. The original agreement stated a third party injection or 12 months extension but apparently the modification superseded it.. I am with Clear debt.
Sounds very harsh as 12 months payments is the norm when you cannot remortgage. I think they have to propose this to creditors - not his decision in my opinion unless it is specified in your original proposal
They cannot petition without creditor authority - and I would say that obtaining that would be very unlikely. Are you happy to extend the IVA for a further 12 months?
Yes I am happy for a 12 month extension as this is what was in the original documents.But the IP is not willing to put this forward as it is not enough in relation to the equity in the property. I think he wants to extend for 24 months. I just feel so scared and stressed at the moment that bankruptcy keeps being mentioned when I have not breached the arrangement in any way.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Wayne.46
I think the authority comes from the modifications issued to our arrangement which stated that if we could not raise equity via a remortgage in the fifth year then the Supervisor should hold a variation meeting to discuss our alternative proposal.
I have boldened what i think is quite pertinent, it's a variation meeting for the IP and the creditors to discuss a proposal (it's not clear if 'our' is, you & IP or creditors & IP, but surely our i not just an IP)
Surely between you and the IP should discuss a proposal and then put it to the creditors, they can either accept or provide feedback.
Do you know if there has been discussions between your IP and creditors already on this issue ?
If I were acting for you, I would be happy to offer just one year's additional contributions, given that this is in line with the terms of the current IVA Protocol. Insist that your own IP puts this forward - as it is your offer and not theirs.
Even older IVAs should follow the protocol in relation to equity unless there was a specific condition placed at the start of the IVA
It is unreasonable to agree an IVA only to have the goalposts moved and when this includes something as important as your house it is even more unreasonable
Thank you for all of your comments. W. Ith regard to the extension I have agreed with the IP to extend further than the 12 months because the thought of being made bankrupt after all this time is making me feel Ill and I just need some resolution. Now I just hope the creditors agree to the proposal.
I feel for you Wayne I am waiting the outcome on equity release and could end up in the same situation which is not what I expected when I started IVA. I am beginning to wonder if IVA are the best thing if you have a property with equity and what seems to be forgotened is it is your home and it is all on paper.
I do hope it works out for you
Thanks, the thing is 5 years ago we were told that the IVA route was the best way to protect our homes. So I don,t know why it all appears to be changing now and it surely can,t be right ! Good luck with your situation too.
Thanks, I agree entirely and is noT right. Surely we would have been better off trying to remortgage at the start instead of an IVA and then had an IVA if it was not possible.The problem is most of us are in a bad place when we start an IVA
Good luck
