www.iva.co.uk

My friend is in an IVA (like me). She has asked me to help her today. But I don't know the answer to her question.

Her problem is that she has two mortgages which she pays and then has her I&E in her budget. She pays her disposable of £400 into her IVA. Prior to her getting the IVA a creditor put a charging order on her property. She hasn't paid anything towards this. It is to secure a CCJ for about £15k. The creditor is pushing her to make some form of payment saying as they are secured they aren't included in the iva and she should make ararngements with her supervisor to arange her I&E so that they get an instalment payment -if not they will issue proceedings and take her house!

Can anyone advise?

Hi Suxanne - she needs to speak to her IP asap.

They are excluded from the IVA as they are secured and they do have a right to take action if they want to so her I&E needs reviewing to allow for this - hopefully there is some moargin to not reduce the IVA payment by too much but if it is a higher than 15% drop then it will need approval from creditors and the term of the IVA may need to be extended.

Hopefully your friend has a good IP who will get on the case for her as soon as she brings it to their attention.

Let us know how she gets on.

Regards,

Update - my friend made an application to Court to vary the judgement the charging order is based on. It went to a court hearing and the judge made her pay £40 per month towards the charge:-) She pays this from her housekeeping until she has a review. So all well.

Suzanne - glad you friend has got sorted out - Is she managing to get the £40 together out of her tight budget ? - If not get her to speak to her IP - it may be they can sort an allowance out for this payment. This will be an arrangment for the next few years so it has to be managable