4th year equity release

[sharon.t]

hi we have been in our iva for one year and 3 months. We have a fourth year equity release clause in our iva. The figure is 33k to be released in the fourth year-we are selling up and want to go into rented accommodation due to the rising mortgage rate.(as our disposable income is becoming less and less)is it reasonable to think that our IP would accept the equity now? We would like to offer it as a final settlement but we are willing to carry on paying the monthly figure until the 60th month.

sharon

[MelanieGiles]

Hi sharon and welcome to the forum

I am sure that your IP will give serious consideration to your offer - especially if there is evidence that you are struggling to make the contributions. How much equity do you currently have in the property?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[sharon.t]

Thanks for your reply melanie-the equity was set at 33k even though house prices have risen we will not have to pay any extra monies in the 4th year.(i have cheked this with our IP)obviously we want to keep as much equity as we can.As we may buy again in the future.thanks sharon

[Adam Davies]

Sharon
Why don,t you offer 33k plus your remaining payments plus 1k[for a variation meeting] less three years IP fees[guess at 3k].This way your creditors will receive the same money now that they would have received at year five.
They are likely to accept this as a full and final.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[sharon.t]

thanks andi your replies have always helped as have other experts hope you are well many thanks sahron