www.iva.co.uk

I have an IVA running about 18 months, I'm struggling with payments £130 I'm a single parent also a registered nurse. I have a part ownership property in which I own 25% my car is worth about £1500. Now my question is if I were to go bankrupt would they make me sell my 25% share in my house thus rendering me homeless?? Even though its in negative equity having only lived here 2.5 years.

Hi Samanthapolla - welcome to the forum

Sorry to read you are struggling but it is good you have recognised you need to look at alternatives. If the property is in negative equity there is no benefit to have this property sold however they would review the equity situation in 3 years time which would be the end of your payment term (subject to you having more than £20 disposable income per month to pay to the OR). They only look at your share of the equity and this must be more than £1000 for them to take action. Considering the property is in negative equity now I doubt very much whether enough equity would grow in the property to give £4000 making your share £1000, that is excluding any associated fees as well.

You would not be made homeless nonetheless, you would be given time to find alternative living arrangements. The positive if you did move to an altenative home is the shortfall on the mortgage that you owe would be included as an unsecured debt and would get built into the bankruptcy.

Have a chat with your IP asap as you should not be left struggling. Remember you will need money upfront to pay to go bankrupt.

This is what my case officer just sent me


Hello Samantha

As previously explained, your IVA is legally binding, if continuous late payments are made, yes your IVA could fail.

At present due to the fact your Income and expenditure shows you can't afford monthly payments, and you aren’t making payments on time, we shall approach the Insolvency Practioner with what to do moving forward.

As soon as we have a outcome we shall be in touch.

I have paid every month but the payments have been late

Hi. Sounds like a similar reply we have had, we are in the same position paying 700 a month, we have made every payment but some a little late and one has been short of 200 when we had to lend money from parents and then pay it back the next month. I don't suppose you are with Payplan, I don't think they realise you have to eat and put petrol in the car! I hope you get sorted soon

Yes Payplan, I basically told them this today

They said that the creditors would take any action they see if to collect the money

My reply to this was

You mean what ever action is legal which means they can make me bankrupt send bailiffs round that I don't have to let in the house, and only force me to sell my house if I have sufficient equity in the property to pay the debt which is doubt ful as I only own 25% and only 2 years into my mortgage. They can't take my car. As its only worth £1000 and I need it for work. No other means of transport where I live and would be unable to get my daughter to a school 18 miles away.

You'll get the money on Friday up to you what you decide either I carry on paying when I have it i will endevour to pay on time or you fail it and I go bankrupt and the creditors get whatever the bankruptcy decides.

This was the reply

I shall approach the Insolvency Practioner for a decision on the future of the IVA. Once we have a outcome we shall be in touch.

So I am waiting with anticipation

Hi Samantha - best wishes for you whilst they make a decision but the decision is also yours as you know you cant proceed with the way things were so hopefully this can get resolved asap so you can move on. Your car will be safe as it is a necessity for you.

My personal view is that bankruptcy is the right option for you. The housing market is pretty static at present, and with a shared ownership property even if there is a little equity it will be difficult to enforce possession proceedings, especially if you have young children.

Maybe a fresh start is just what the doctor ordered?

I wonder if you have had a reply? I am waiitng for a reply for my IE submitted in february and was promised a reply on the negative budget we had by 26 july and we are still waiting...... I wish I hadn't chosen payplan!!

That does seem to be taking a dreadfully long time to resolve for you mab - clients suffering financial hardship are always given a priority in my firm. Perhaps PayplanSamuel will pick up on your posting and be able to intervene?

Hi mab,

I have previously tried to reach you on other forum posts/topics but have not heard anything yet.
Please can you e-mail me details of your case (including your contact details) and I will ensure this is looked into as a matter of urgency.

My e-mail address is: samuel.jepson@payplan.com

Thank you for your response. I have noticed your previous message. I have sent you an email regards

I have received an out of office until the 13 August, well another week won't harm!

Is PayplanSamuel the only soul in Payplan who can help with queries like this?

I wish I had found your company Mel when I started this.

And we would have loved to act for you mab, had you found us. How were you put in touch with Payplan as a matter of interest?