Can i finish IVA early?

[boychild]

We are one year into our IVA, paying £570 between myself and my husband. WE know our house is currently worth £100,000 and have £74,000 on mortgage. Can we release the equity in any way to pay off most of the IVA or all of it in a year or two? How does this work exactly? If we were paying back the IVA company say £37,000, if we had enough to cover that would that be sufficient or wuld we pay more? Im so confused by all of this, i didnt relise how little we know about our IVA until reading this forum. Also, after 6 month my husbands creditors said they wanted more money, so he has had to extend the IVA for a further 6 months and raise an extra £182 a month for those last 6 months. Is this allowed?

[Adam Davies]

Hi
Do you have any fourth year equity clause in your IVA ?
If not then you may be able to offer the 37k,less a saving on IP fees.
Why were you asked to extend the IVA ? Was a creditor added that you did not include in the original proposal ?
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

[boychild]

They rang us up after 6 months and said that one of the creditors (that WAS originally included)wanted more money back and that it their right to request it (something like chapter 72 rings a bell????) so my husband has been made to extend it 6 months and because our car finance will be finishing around that time, for the remaining 6 months he has to pay the £182 we normally pay for the car to them. Is this right, surely if they can do that after 6 months of agreeing to the IVA then they could keep doing that until we can pay no more?
Im not sure if we have a 4th year claus. We do have to raise an amount in the final year, myself £3900 and my husband is £1500, is this the claus? We had to have our house valued recently for them.

[MelanieGiles]

That is a nonsense. If creditors have accepted an IVA, they cannot ask for more money. What on earth is your IP doing???

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[boychild]

Hi again Melanie. Im feeling extremely concerned now after reading this and your reply to my other topic in Expenditure. Where can i get proffesional help maybe over the phone or in person, im scared that im being ripped off somehow. Its a topic i have very little information on and i think we were naive in agreeing to these terms as i just believed they were able to do this?!

[MelanieGiles]

Can I ask which firm you are using, and who is your IP?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[boychild]

Hi. The firm is Money Debt and Credit and supervisor is Ian David Holland

[MelanieGiles]

See my response on your other post.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Mel
If a debt was estimated incorrectly,say a car lease and then when the debt was proven some months later to be much higher could this not be a valid case for a creditor to request an extension to the IVA ?
Also another case of someone who is not aware of the equity release clause
How many more people in IVAs are unaware like this ?
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

[boychild]

Andy, they said the extension and extra money was due to one of the creditors (HFC) wanting all of their money back and not just some of it, and we were told that we are 'lucky' that all the creditors havent done the same!! Is this all wrong, what can i do about it?
Also, im still confused about this equity release claus. What i understand is that in the fourth year we remortgage to raise an amount, £3900 for me and £1500 for my husband. So if there is alot more equity available, so this all have to be given to them on top of what ive stated? IF so then we have been misled as we were told we only needed to raise the amounts shown above. What do you suggest we do?

[MelanieGiles]

Andy - yes but only by formal variation. One creditor cannot dictate the terms of the proposal for other creditors after there has been global agreement.

This poster has been extremely badly advised. I suggest that they get a second opinion or take legal advice about the valididy of this very curious IVA.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi Boychild
what a strange situation.
Hfc are bound by the IVA wether they like it or not and can't dictate that they want more.
I suggest a call to your IP and clarify the situation and more importantly clarify the equity release clause.
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

[boychild]

Andy and Mel,

Thank You both for your advice. I just wish i had found this forum a year ago when we started our IVAs! It is very useful and informative on an issue that not many seem to know about.
I have drafted a letter tonight and i will be sending it out this week to both Ian Holland and Money Debt and Credit demanding answers to the many issues i have mentioned here. Im really grateful from your support and ill update as and when i get a reply.

Boychild