www.iva.co.uk

At long last I have received details of my variation to be put to the creditors in lieu of equity but no date yet from Payplan.

However is says that "Should this meeting be rejected by creditors, the Supervisor will withdraw from the arrangement, declare arrangement failed AND petition for the debtor's bankruptcy"

Please anybody tell me if this is normal. After 5 years of paying an IVA I thought I was protecting my home but it appears it may all have been a waste of time and I might as well have gone bankrupt in the first place. I will speak to Payplan on Monday (why do these things always turn up at the weekend)

Any advice from experts would be welcome as I am out of my mind with worry about this.[:(]

Nothing to worry about - this is standard wording on any variation.

By all means confirm with Payplan but don't let it worry you this weekend.

They can only petition for your bankruptcy if the IVA allows for this, or creditors specifically direct that route.

This is most certainly not standard wording!

Remind me why you are needing the variation please.

This does seem to be standard wording for Payplan variations and perhaps it shows why people should seek advice from the independent, professional sector and avoid those firms funded and recommended by the banks.

Hi Payplan are seeking a variation because I could not re-mortgage and it is for the extra 12 months payments in lieu of equity of which I have already paid 3 and it will probably be 4(if not more buy the time this gets sorted out) and these have been increased by 50%. I am really not happy about signing this. Can I refused and ask for it to be removed?

Why do you need a variation at all. Most proposals have the alternative to remortgage enshrined within them, so if one doesn't happen, the other does, with no need to consult the creditors.

Sadly Foggy this was not included in my proposal don't ask me why and I did not read it closely enough when I signed, it you know how it is. I stupidly relied on what I was told verbally.

Michaels people with the benefit of hindsight I would have done things differently.

You weren't being stupid at all, you were relying on your IP's advice ( I say IP -- but, as you know, he or she has probably never seen your file!). In the pre-meeting stage, acting as Nominee they should be working in your interests, before becoming referee on the Supervisors role, however, my feeling --- and it is purely my feeling --- is that the so called charity organisations are a little too creditor centric for my liking.

Yes you are right. I realise that now. At the moment I am just asking myself why I would want to complete an IVA for 5 years to be made bankrupt. They have already asked me to keep making increased payments is that just to make sure they get all their fees? I have been taken for an idiot that's for sure.

Oh hun, I have no advice...just really feel for you!

Have they said how long they want you to pay into the IVA for?
I have to say i was shocked at how little my creditors got from payplan when we received our first year report..my creditors got as little as 10p..

I would be asking exactly where the extra payments were going, if they are going to the creditors or to them.
Really hope you get this sorted very soon x

You do not have to sign the variation because it is your proposal. Speak to your IP and ask for this to be removed and also check your proposal to see if the variation is even necessary. Foggy may well be right.

lisaMB It is another 12months which I am happy to accept but not the bankruptcy. Thanks for your support it is appreciated.
Michaels Peoples I have checked my proposal carefully (something I should have done at the start) there is no mention of what happens if I cannot re-mortgage. I am not prepared to accept the clause about bankruptcy. If the variation is not accepted than I wish to explore other options as far as I am concerned bankruptcy is the last resort

Tell your IP to include the following options into your variation:-

Either:-

1 That the IVA be extended by no more than 12 months, or sooner if the equity sum is paid earlier

2 That the IVA be terminated and creditors then be free to pursue me directly

3 That the Supervisor be permitted to petition for my bankruptcy

I can pretty much guarantee that they will plump for option 1.

Thank you Melanie as you can see by the time I am up this morning I did not sleep well!

I am going to query it with Payplan as there are also some other figures that I do not understand. I am not prepared to sign anything this time that I am not happy with.

Thanks for your advice. I wish you were my IP.

Im beginning to wonder if payplan actually has an IP...one that actually does anything anyway.