Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

Bydollypeg
#210645 We have been in an IVA since Oct 2003. Last June we arranged re-mortgage to offer a full and final of £10000. We approached our IP and they said they wanted payslips etc before they would call a variation meeting. We sent all the paperwork and they said they hadn't received it. We sent it again and again they said they hadn't received it! By this time the mortgage offer had expired. We are still making regular payments, but today I received a letter saying they were failing our IVA because they said we had not replied to a letter they sent about two weeks ago. I sent a reply well within the time limit they had set but it seems they haven't received that either. They now say they are failing our IVA due to 'non-compliance'. Can they do this? We have never missed a payment and have the offer letter for the re-mortgage, which proves that we have tried to get one. Our IVA should have finished last September, but we are still paying even though there hasn't been any variation meeting.
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ByJaneClack
#210717 Come on - how can you have "failed" an IVA if you have not missed a payment and why are you still paying into something that should have finished? Send a letter RECORDED to find out what is going on. There is something very rotten in this state of IVA and you need to know what is going on. Sending the letter recorded costs little and then they cannot say they have not received it.

Pleasse let us know what happens as they cannot fail your IVA if you have complied but why have you continued to pay since last September without getting some clarification if it should have finished then?
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Bysubmariner
#210749 Just to clarify, I'm not sure why you were arranging a full and final so close to the completing of your 5 years of payments - do you mean, really, that your extra mortgage was to satisfy the equity part of your original IVA? (But in that case, you wouldn't have needed a variation meeting, so again I'm a little confused on that part). Perhaps you can tell us more about that please.

However... you mention that you have contacted your IP - but do you really mean just your IVA Company or the real licensed Insolvency Practitioner i.e. the actual person? If it's just the IVA Company so far, it sounds essential to contact your actual IP; the IVA Co. may put up a smokescreen and pretend there's a problem in contacting him/her directly (especially if they are in difficulties themselves?), but you will be paying your IP several thousand pounds from your IVA fees and you have every right to talk to them. I found my IP to be an extremely helpful man - but luckily my IVA Co was fine too...

In reality it is only the IP (and his dealings with your creditors, of course) that finally decides about your IVA success or failure, when to call variation meetings etc., not the IVA company. As Sarah says, there is something very dodgy sounding here... from what you say you have satisfied your IVA in every respect except actually completing your mortgage - and this only because your IVA Co has been non-responsive (and then blaming you!). Make sure your IP is fully aware of all this at least.

Unfortunately, as we all know, since last June mortgage providers have become much more choosy and your chance of rearranging the final equity payment is much less now (at a realistic interest rate anyway). As you are continuing to pay, you may be able to arrange to carry on and substitute one year's extra payments instead - although the chance of getting your IVA Co to do anything towards this does not seem good at present! There was a clause in my IVA (and I've heard others say this here) that if you are able to show that you have properly tried - but failed - to raise a mortgage for your equity payment x times (mine was 3 times), then your IVA will be deemed not to have failed on that point, (There wasn't even a mention of substituting extra payments in my clause - didn't apply to me as a couple of years ago things were much easier!) Do you know what it says in your original proposal document on this point? As you say, as you actually had an offer letter you would be on pretty strong ground here, I'd have thought!

Again, I'd recommend you talking directly to your IP if you are not doing so.

Keep in touch, please - and best of luck!
Bybluesky
#210773 Submariner probably on the money here, not uncommon for intermediaries to cause the problems
Bydollypeg
#210893 Just to confirm. The £10000 was to release equity, not a f&f as I said before! We were going to offer a f&f a few months before, sorry! I am waiting until the end of this week before I decide what to do. I hate confrontations over the phone. If I haven't heard from them by Friday, I will put a letter together to see what can be/is being done. I don't even know who our IP is! Should there have been a creditors meeting before the IVA finish date in September then? I thought that they would have had to ask the creditors if they wanted us to pay for an extra year? Thanks for your answers up to now.
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Bysubmariner
#210894 OK, if the £10000 was for equity release, and it was the sort of amount that was expected, no variation meeting would have been required and that would have signalled the end of your IVA last year... which makes this all quite amazing. Why on earth did the IVA Co not respond to you at the time of your last payment and your mortgage offer to raise equity? I'm afraid that it raises alarm bells about your IVA Co; this is a company that is holding significant funds belonging to you, so you are going to need to become confrontational; but not necessarily on the phone! In fact, I suggest that you need to start putting the facts above in writing and copying to your actual IP!

What should have happened when you had your mortgage offer, was that your IVA Co (in conjunction with your IP) would have checked the amount your new mortgage and given approval (ie in my case, my mortgage Co needed proof that this sum was actually being paid into my IVA account - and I arranged for my solicitors to act as a "legal go between" dealing with the Mort. Co and my IP). Your IVA Co should have then arranged for transfer of your equity release into your IVA account and informed your IP that your IVA fund was now complete, as far as they were concerned. The IP would check the fund, then inform the creditors, ensure all claims for payments were received and then distribute the funds amongst your creds after subtracting his fees. And that would have been it! (Oh, plus the certificate of completion and tremendous smile on your face!)

You definitely should find out who your IP is and talk to them asap. IPs are Government licensed practitioners with far more at stake in this sort of case than the average IVA Co. Bear in mind that he/she would generally be very busy, no doubt dealing with multiple IVA Cos and many IVAs, so maybe yours has slipped through his/her net, especially if your IVA Co has been putting a smokescreen in the way saying that you have been non-responsive.

I'm afraid it's going to take a bit of work yet and please come back here for support and, if necessary, more practical help if you still can't get through to your IP...

Oh... and good luck :shock:
Bydollypeg
#210899 The funds had not been paid because the mortgage offer had expired before anything was sorted! They wanted payslips and proof of the mortgage offer, which we sent twice, but they said they hadn't received them. We have just kept paying them because we didn't know what else to do. We have complied with everything they wanted us to do but are now saying that we haven't. Someone else we know had problems with this company but we thought ours would be straight forward!
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Bysubmariner
#210924 Yes, understood about the funds and also about continuing paying.

I think you did the right thing in continuing (because it shows no lack of responsibility on your part). The only thing you perhaps should have done is insist on involving your IP directly, so that's what I recommend you do straight away (when you find who he/she is!).

It certainly sounds like you have some sort of case against your IVA Co: hopefully someone more expert in these matters here will advise on that. But the main thing at the moment is to get your IVA back on track and completed. I think only your actual IP can help to do that now, given the reprehensible performance of your IVA Co to date!

You say about waiting until the end of the week before doing anything... I say, "why wait"? I think you really need to get moving on this: time is not on your side now you have a letter about failure!
Bydollypeg
#210989 I have rung the people who arranged the re-mortgage offer for us and they have told me that they can't fail our IVA for non-compliance because we have done everything they have asked us to do. They also said that in the present economic climate we wouldn't be able to get a re-mortgage now. They have said to keep up with the repayments and then wait and see what the IVA company do next. I will keep you informed.
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Bysubmariner
#211016 Your mortgage brokers are agreeing with above, but the fact remains that your IP will almost certainly have to arrange a variation meeting to (now) cover the lack of mortgage offer, so you still need his/her help in closing this off asap and getting your creditors' agreement (unless, as mentioned above, you already have a clause that allows for not being able to raise a mortgage in your IVA proposal). I suppose they just may still want you to try raising another mortgage, just to prove you can't; although an IP will be realistic I guess.

Once you do eventually get to talk to your IP ther'd be no harm in letting him talk to your brokers - that may be the only proof you need about trying to comply with your IVA agreement. (My IP and my broker talked on several occasions, so I don't think that it's an unusual thing to do (but I did have an unusually good IP it seems!)

So, to sum up, getting to talk to your IP asap is still crucial to sorting all this out, I think.
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ByDeus
#211018 Dolly I really feel for you :( But a thought on this one.. if you knew that they had not recieved two letters previous and that the content was going to save your IVA why didnt you send the letter recorded?? :shock:

During my BR everything went recorded even if it meant I couldnt afford my cuppa soup! :lol:
Bydollypeg
#211385 I have received a letter from our IVA co this morning, saying that they are aware of the mortgage offer, but as they did not receive any supporting documents they cannot be held responsible for lost mail. Because of our 'lack of response and supporting information not being received' the variation was closed and the mortgage offer expired (this we knew!) To prevent our IVA failing we must now take steps to re-morgage as per our proposal. We have been told by the previous broker that we will not get a re-morgage in the present economic climate! The IVA co have said that they have an 'in house' mortgage co and that if paperwork to support a re-mortgage is not received by 25th March our IVA will fail! I have rung today to find out who our IP is and have been told that we have two joint IPs but that I cannot speak to either on the phone as all queries must be made in writing direct to them! Can anyone tell me what to do now please?
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Bysubmariner
#211402 What do they mean by an in-house mortgage company- and what supporting paperwork do they require? In gettung approval for your IVA you muat have supplied an enormous amount of supporting paperwork already.

Are they suggesting that they will be able to offer you a mortgage (from who, really?).

All this has a very bad smell about it. It may be worth writing to your IP(s) asap (recorded delivery) and asking for a phone call as a matter of urgency. You are getting nowhere with the front desk staff.
Bydollypeg
#211444 Thanks submariner. I have hardly slept through worrying about this (the reason I am on here so early!) I will put a letter together today and send it recorded. I am still puzzled as to why they are failing it though? We have done everything they have asked us to do and we have never missed a payment, in fact we have paid 6 extra payments already!
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Bysubmariner
#211451 Have you also thought about getting in touch with Citizens Advice Bureau? - I think you need one of their debt professionals to help here, because - as you say - you have done nothing wrong and you are following a legally regulated path.

Your IPs (why you have two is anyones guess!) are licensed and regulated by the Secretary of State for Trade and Industry and as such have to conform to rules of fair play etc, which doesn't appear to be happening in your case. (To be fair to them, they might not know anything about your problems and correspondence with the IVA Company, who might be keeping them in the dark as much as you.)

Another independent debt professional (especially via an independent body like the CAB, so there would be less "closed ranks" effect) may be able to get through the IVA Company smokescreen and work out what is really going on and ensure fair play according to IP rules...

Worth a try?

An alternative to the CAB (eg if their debt counsellors are really busy) might be going to another IP directly (some do advertise their services directly to the public: there's a couple I've noticed in our nearby city). That is likely to cost, of course, but I think a first consultation might be free and may shed some light on what to do.

I've run out of ideas for now, but please - to any expert here - chip in!
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