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I am due to have my creditors meeting but my majority creditor has demanded that I stop paying mortgage protection and give them that money

With the risk of redundancies around everywhere they are refusing to budge on this can they demand i give up my mortgage protection insurance? I only have a few days to think about this.

Hi and welcome to the forum.

I take that you have been getting calls from this creditor? Ignore the calls, they are just call centres and will try anything to get money out of you.

Your IP will help sort these things out. Which company are you with and when is your creditor meeting scheduled for?

Hi. I am afraid it looks as if they hold the cards at the moment. What %age of the total debt do they hold ?

How much is the insurance monthly --- it is not that they want you to give up the insurance per se, it's that they don't want to pay for it. Can it be covered from the agreed allowances ?

I am with Kallis on this one. Don't give in to threats, ignore their calls, it will all come out in the wash. asking you to give up this kind of cover in the current climate is a reckless and futile attempt by them to get your money.

Regards........Howard

I suppose it will depend upon who is demanding it - is it the creditor or is it the call centres?

Either way, needs to be sorted out with the IP.

I am assuming this was raised prior to the creditors meeting, due to the short time period for a response. A call centre would just make the threat for immediate payment and not be aware of such things as the OP's other outgoings.

Dont give it up unless your IP says so.If its necessary it will show up in your chairmans report on the date of your creditors meeting as a modification.

Is it a requested modification at the creditor meeting ? If so can you cover this from one of the other allowances ? With the uncertainty around at the minute it is got wise to give this up however it might be the only option to ensure the IVA is accepted... What I would say is once given ip it may not be as easy to get a new policy as some companies ask questions around insolvency even for insurance purposes ! Work with your IP to resolve this matter - hopefully they sort it for you

Hi - your creditor can ask for this modification and whether you agree depends on your priorities. Is a DMP an option for you? x

A lot of these modifications do seem unfair and if you disagree it may be better to reject the modification and petition for bankruptcy. IVAs are not meant to worsen your position.

Harsh but true Michael. Going bankrupt is NOT the end of the world,in fact its a fantastic tool to allow you to restart your life. People being forced into 6 and 7 year ivas should seriously look at how long they will be expected to operate under fairly strict budgeting!

Paul

The allowances for BR now though are a lot tougher, and some of the things we get in an IVA, such as a Sky subscription for example, are not allowed in BR.

It might only be for three years but I think those in an IVA are better off at the moment.