www.iva.co.uk

Hello

I am somewhat confused and a little worried to say the least.
My IVA is due to finish March 2013,

My concerns are as follows:

How long do you remain the property of the IP and past creditors after the IVA is completed. as in the case of the PPI would have been added on to the original loan/credit card etc, the repayments would have been divided up to cover PPI cost and them the loan etc. Once the loan etc was paid up in full the PPI would cease to be claimable. Surely PPI is not classed as a debt it is completely separate from the actual loan. OK so you go into an IVA all debts declared, arrangements made to pay back the debts, How can the PPI be calculated into a debt? How can they be classed as windfalls?

My other issue is I have a clause that in the final year I have to raise 23,500 equity, now I have seen on other posts that is probably very unlikely that I will be able to remortgage due to the economic climate and that there will be more then a high probability that there will be an extension of a further 12 months of payments. What if I cant afford to carry on for a further 12 months.My husband is coming up for retirement, he is not on my IVA but his wages make it possible for me to pay my IVA. We have struggled scrimped and robbed peter to pay paul over the last 4 1/2 years to possibly loose the IVA at the last hurdle. Due to my husbands iminant retirement we would not be able to afford an extra 23,500 on top of the current mortgage payment now and I couldnt afford to keep paying my IVA either arent these taken into consideration by the IP when deciding you have meet the criteria to say enough is enough. I will finally add that 97% of my debts had been paid for some considerable time before spending 5 years in a DMP and now another 4 1/2 yrs in an IVA, when is it determined when a 60 month loan has been in receipt of payments for the last 12 years cases, other loans have had a longer payment period also

Please could you advise

Hi Molly, PPI on a preIVA debt is always classed as an asset (not a windfall) no matter when it becomes available and no matter whether this debt was paid off prior to the IVA or included in the IVA. There are some companies who are taking the stance that even post IVA completion PPI still forms part of the IVA and can be captured but this is very much down to the individual IP at the moment whether they take this stance or not.

You will need to speak to your IP regarding what to do about the equity release if your husband is going to be retiring. They may be ale to propose a variation to the T&C's of your IVA but only they can advise

thank you for your response, but it still seems to me that anything goes, when do you get free from an IVA 1yr, 2 yrs ???????? what if you come into an inheritance 2 yrs from IVA completion do the creditors still have call on that money also??????

If you have received your completion letter then any windfalls/inheritances you get after that are yours to spend.

Molly, it's anything that was known about at the time of or during the IVA that is captured, anything afterwards is yours once you have completed, PPI will always have been on a debt prior to the IVA so even after the IVA concludes PPI can still be reclaimed into the pot so to speak, an inheritance that comes in following completion would be yours as it wasn't available at any time during the IVA, PPI was avaiable during the time of the IVA even if it wasn't claimed then, which is why it can still be claimed afterwards

thank you for your reply's, could anyone tell me what the HRMC has to do with things ????

There has been a problem with VAT which HMRC are currently sorting out with the IP's.

what sort of problem ?

I believe it was to do with fees but not 100% on that - one of the others or an expert will be along to explain.

I think it's something to do with whether VAT that has always been charged on the fees from IVA's should have been and whether or not these can be reclaimed and paid into the IVA pot, IP's are trying to gain clarification from HMRC on the issue but it's taking a while to sort out, as anything does with HMRC!

thank you[:)]

what type of valuation do I need to get for the IP

regarding your house? I believe you need a written valuation for a realistic sale, ask a couple of estate agents they should be happy to oblige for you

I just had one valuation from a local agent. I told them that I might be being made redundant and would wish to sell quickly if I was.

My IP was quite happy with that.

I only got one too and sent this to my IP who was happy with this. I also told a little white lie as to why I wanted the valuation. x

Just to clarity the point on VAT - HMRC determined in May 2011 that VAT should not be charged on IP fees in IVAs, so refund claims have been made which are now largely paid and funds repatriated so I understand.