Payplan have now emailed me today to say that clearly I am dissatisfied and they are referring my case to their Compliance Officer for review. It's now making me feel as though I shouldn't be complaining and have upset them.
Stick to your guns. If you have a query and you are not happy then they should be looking at it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks! I'm really worried about it and half wish I hadn't started it but I just can't go another 4 years not knowing if I'm possibly still going to lose my home.
Mine mentions nothing about my home having to be sold.
Hope you get an answer - let us know.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'm glad this is being referred to someone higher up the food chain in this firm - because to be frank the script you have reproduced does not make one bit of sense.
Thanks Melanie - I have been really worried about it for months and have sent numerous emails but I just couldn't get a straight answer as to what would happen in the event of us not being able to re-mortgage as it just doesn't cover it anywhere in the agreement - went through it completely last night just to make sure and couldn't find anything that referred to this. We will be in our late 50's by the time the IVA comes to a close and I am really worried that if we can't re-mortgage then we will be forced to sell our home. I feel awful because it's my IVA and my husband would hate to leave it if we were forced to sell.
I have now heard from Payplan and their findings are:-
The protocol suggested wording, made by the IVA Standing Committee for the equity clause, which we adopted, was published on the Insolvency Service Website. Hopwever, at that time they had removed the provision for 12 months additional contributions in lieu of equity. This is the accepted standard produced between creditors, the Insolvency Services and Insolvency Practitioners to enable IVA's to be approved more readily by creditors. Your circumstances met the criteria and did not include the 12 months as did no other Protocol Compliant Proposals at that time.
IVA's and proposals are as the title suggests Individual in most aspects to each debtor and are also an ever evolving and changing document. Your papers were sent for your agreement and signature before we submitted them to the credits for acceptance (which I signed not realising this clause was not in it and in my opinion should have, been included as I thought it was standard).
Adjudication:
They find that they have acted in my best interests in accordance with the IVA standing committees suggested wording at the time (February 2009). However in light of my concerns they will call a further meeting in order to request that the creditors allow the 12 month extra payments should I be unable to remortgage or release equity.
SO! Where do I stand now? I really feel as though I have no protection should I not be able to remortgage as it appears to have left the door open for my creditors to do whatever they want after 5 years of paying into any IVA - Am I wrong? Could I still lose my home?
Reading that, and bear in mind I'm no expert on this, I reckon you may have to pay the extra 12 months.
Hopefully Mel or Andy will be on to advise further.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The earlier IVA protocol did not state that 12 months additional payments would have to be made - but merely stated that the IP would need to consult creditors at that time. I guess this is what Payplan are suggesting to you - so I would let them get on with it.
Hi there - still confused and not sure what to do!
I have spoken to Payplan (one of their Senior Compliance Officers) who said that if I can't re-morgage in year 5 then the creditors can ask them to fail the IVA or ask that they put me into bankruptcy even if I haven't missed any payments!!
I feel very misled by all of this - now 17 months into my IVA. I have said that I wish to make a complaint as clearly none of this was explained at the outset.
They have suggested that I speak to my mortgage company and try and get a lump sum to offer now to my creditors. But they won't lend us any more money as we aren't earning enough to cover it.
Payplan do not think that the creditors will accept a further 12 months in year 5 as we will have so much equity in our home - which will be worth in the region of £500,000 against a mortgatge of £135,000 and will want the equity one way or another. This seems to be the sticking point from what I can gather - may be wrong?
Surely under these circumstances they should never have recommended an IVA as the way forward?
We are already in our 50's and will be late 50's when year 5 comes around and I am sure we will probably be unable to re-mortgage at that time.
What would you suggest I do? I am really upset about the whole thing and more confused by the day. Do you think its worth leaving it until year 5 and hope for the best - do you know anyone else who has been in this position and what was the outcome? Thanks - Tobymoz
That is pretty incorrect advice from someone who has a "Senior" position in that company.
How much are your actual debts? I am suprised that an IVA was even suggested to you if you have equity of over £350k - assuming of course that your debts are lower than this figure and therefore that you are technically not insolvent.
Tobymoz, I REALLY feel for you. For me, the reason I would be entering into an IVA is to protect my home. Is that not the main reason why people opt for IVAs? It just doesn't make sense. I don't blame you one bit. If I were in your shoes I would be at wits end! If this is the way IVAs work I would not be entering into one! I can certainly see why you wouldn't want to continue paying into an IVA for all those years just to have your house taken from you at the end!! You wouldn't be able to get a remortgage to free up the equity and if they did force you to sell your home you wouldn't be able to buy a new house either until your 6 years was up and you built up your credit rating again. I know its not certain that you will lose your house but it certainly doesn't sound like its ruled out either! I really don't know what to advise you. If it was me, I would probably wait and see what payplan can negotiate at the variation meeting. If they can't get the 12 month clause put in would changing to a DMP be an option? Can anyone tell me are most IVAs including the 12 month clause nowadays?
