Hi i am looking into an IVA at the moment - i currently have a DMP set up for some credit card debt through CCCS which started a couple of years ago but more recently i obtained a CCJ through a business liquidation which has taken 5 years to sort out and although have agreed a repayment plan with them - in the long term i know i will struggle to pay this £35k off over the 5 years they have allowed me. They are also putting a charge on my house. These are my major creditors so i am worried they won't approve my IVA anyway. If it were to be approved what happens about the charge on my house? I know the CCJ with be included in the IVA but am worried that they still may take possession of my house if they don't get paid back in full in the 5 years which is what i initially agreed too. Any advice would be appreciated
If you decide to propose an IVA - please try and get this in place before the charging order is made final. If you are going to use CCCS for this, make sure that they can react quickly to obtain an Interim Order from Court, which will temporarily stop the creditor from securing their debt against your house.
If this creditor represents more than 25% of your aggregate debt, they may not vote to accept an IVA if they feel they are better off in pursuing the legal route. This would make it a shame that you are in a DMP in the first place - as one of the weaknesses off this process is that it affords you no protection against the greed creditor who wants to put themselves ahead of the others.
If the charge against your house is eventually secured, you will need to enter into separate arrangements with that creditor to pay them on an ongoing basis to avoid them applying for an Order for Sale.
Excellent professional advice from Melanie and on your other post has offered to meet you on the 15th Feb in Birmingham so hopefully you can discuss this in more depth face to face.
Hope it all goes well for you.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi
You will need to continue paying the CCJ whilst sorting out a solution. If they have indicated that they are going to take a charge and are the largest creditor then you must be prepared for them to reject an IVA.
As Melanie states you need to move quickly
Regards
A good IP will engage in correspondence with this creditor from an early stage to see if they are amenable to support IVA proceedings. If not, then we will need to look at other options.
