A question for the experts, please

[guiness]

I thought everything was sorted with my IVA. Proposal signed and date set for creditors meeting and then my IVA company have sent me a land Registry RX1 form with a note saying 'please sign'.
I rang them to ask them what this form actually was and they said that it was for me to agree to release the equity in my home or sell if thats what the creditors decide. I was gob smacked as I'd been told previously that I did not have enough equity in my home (approx 15k jointly owed).
When I told them I was not happy to sign this, I was told that if I didn't sign it they could not go ahead with the creditors meeting!
I explained that I could not sell my home as I would then have no where for my 5 kids to live and if I re mortgaged I would not then be able to afford the proposed IVA payments. They then said it was only if the creditors asked for this to happen and if they did not they would then destroy the form. I feel as if I'm being blackmailed! If I dont sign the form, no IVA and if I do maybe no home'
Please advise.

[sonyse2t5]

You haven't been blackmailed. All IVA acceptance requires(unless you have no house like me) a condition of a mandatory 4th year Equity release. If there is no Equity there then a 6th year may be required of you to contribute into the IVA.

From I know, others will verify this,if the Equity is released in the fourth year, your iva payment does go down to accomodate for the re-mortgage payment.

Hope that helps. I don't think you need to worry

[guiness]

They way it has been explained to me is that this is for equity release or sale of property now.

[sonyse2t5]

I am assuming you are told if the creditors don't get no 4th year equity then you might be asked to sell? They could do I suppose and have the power to.
But I have not heard of that happening - a 6th IVA year is often what happens if there is no EQ release.

There are loads of people on an IVA with that 4th year EQ release condition.You are the first I heard to panic over it.

[catullus]

Guiness

What does your proposal say about your property and any need for equity release?

[guiness]

I am not 'panicking' just asking for advice as that is what this forums about??
I am aware of the 4th year equity release what I am concerned about is the fact that I may be forced to sell or release equity now at the start of my IVA.

[guiness]

Catullus
It says there is currently equity of £10k jointly owned and that based on a loan to loan ratio of 85% there is sufficient equity to re- mortgage. Therefore they ask the creditors agree to exclude the property from the arrangement.

[catullus]

OK, well if you are SURE that it is proposed that the property be excluded from the arrangement (rather unusual in my opinion) there is no requirement to sign the RX1 until after the meeting of creditors.

It is entirely possible that the creditors will ask for a modification asking you to remortgage in year 4 and if you find you have to accept this mod to get the IVA through then you will need to sign an RX1 then.

Hope that helps

[Adam Davies]

Hi
The RX1 form is not a charge on your property but a notice,so that the IP is informed if you try and sell the property.
Make sure that when your creditors meeting has finished you are 100% sure of the equity release provision,if any,before agreeing with the IVA.
Even though you have little equity now you will,more than likely,have some in four years so be prepared for this to be a modification put forward by your creditors.
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

[MelanieGiles]

No one owing property in today's climate will escape the equity release clause, or if they do they are extremely lucky, and my clients are advised of this from day one.

Isn't it funny how some providers leave important things like this to the last minute and slip them in fairly matter of factly!

If you have made up your mind that you will not accept a final year equity release, then I fear you will not be successful at the creditors meeting - but if your IP is acting for your on a no win no fee basis, I suppose there is nothing to lose.



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

[guiness]

This is my problem my IP did not say the form was for a final year equity release. Is this what this form is??
She said it was for the creditors to decide at the meeting whether we need to sell the house now to release the equity.
She has confused me!

[MelanieGiles]

She is asking you to sign this form in advance of her expectation that creditors will ask for one to be filed if you agree to the equity release.

I am amazed that this important aspect, concerning your home, has not been discussed with you fully. have you had a meeting with your IP at which these points have been explained?

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

[guiness]

No only had a telephone conversation and then a few emails asking me to send information to her.
Was not offered a meeting.

[james.c]

some one mentioned about paying for a 6th year if their is no equity, I rent but as far as I know my iva is for 5 years.

Is their a chance my iva might go on for 6 years?

[MelanieGiles]

Unlikely - check the terms of the IVA proposal and your chairman's report.

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