Can anyone help? I am due to finish my IVA in Jan and will have a balance of approx £4,000. I have been informed today by my IP that i will owe approx £13,000. How is this possible. I feel really down at mo because I thought I had nearly finished. Also if someone gave me money what sort of figure would I have to offer for it to be accepted?
No they havent. I sent them an email earlier asking. The letter said "it looks as though you may qualify for remortgaging". There is equity in my house. Im so confused and feel like crying how can this be?
Depending on what your proposal document says about equiity and releasing it, it may be to do with this. Have you supplied some property valuations during the last year that shows the level of equity ?
You really need your IP to explain the equity release clause to you and what this means if a remortage is not possible - which is very likely! Some IVA's have a provision for an additional 12mth of payments rather than the equity release - your IP is the one with the answers.
Let us know how you get on.
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There is a solution for everyone .... Just need to stay positive !
Hi SDS44 very sound advice from Luluj, it does sound like you had and an equity amount that was to be released in the last year of your IVA, i would definately read through your proposal and then see if you can speak with your IP, good luck, hope that you can sort this out. x
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
If you agreed to release equity you may qualify for a remortgage or secured loan and may not have the option of a twelve month extension. You need to chat to your IP.
As has been posted above, you need to dig out your proposal and read it thoroughly. There should be a section in it relating to your property and whether it is excluded from your IVA or whether it will be subject to final year valuation and equity release into your IVA.
If your home is subject to equity release then you would need to obtain valuations to determine the equity and then try to remortgage (normally 75% - 85% loan to value). it is highly unlikely you will be able to remortgage so generally protocol proposals have the term "At the supervisor`s discretion, a further twelve months contributions will be made in lieu of equity"
However, there have been posters of late who have been informed by their IVA providers that they need to take a secured loan to meet equity requirements rather than make twelve more payments...it`s all down to the wording in your proposal.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
If there is no equity in your property, it makes no sense that your IP is asking you for additional monies towards the equity. Get them to confirm their thoughts in writing so you can consider your position further.
Thank you all for your replies. I have now been informed I will have to take a secured loan to pay off IVA. Do you have any idea how much would be a fair amount to offer in full settlement?
