Hello spenmotherhen
To understand exactly what you will be required to do,you will need to read the property section of the proposal together with the chairmans report and any modifications.
reading between the lines there will be a modification that states that you will have to get a new valuation of the property in month 54 and based on that valuation, attempt to remortgage at that time to release any equity in to the IVA.
If you cannot do so, because for instance you are declined or there is no equity, then you would be required to pay an extra 12 months contributions to buy out your interest in the property. This would make it a 72 month IVA as opposed to a 60 month one and, as you say, almost certainly this is not optional but a result of not being able to remortgage, which your supervisor will need to be satisfied is the case.
If having done a remortgage (and your contributions in to the IVA stop at that stage) or having paid an extra 12 months there is enough money in the pot, then the creditors will be entitled to full repayment and interest on top. to the extent that there is money available to pay them.
Only if creditors have been paid in full and received their full interest at 8% pa for the life of the IVA could any surplus money be returned to you.
I hope that explanation helps but, as I've said, I've read between the lines a bit and your proposal and any modifications may have a slightly different set of timings.
Oh yes, and if the pot is not big enough to pay the creditors in full then yes, the balance of the debt is written off and you are free of it
Last edited by
catullus on Wed Oct 17, 2007 8:02 pm, edited 1 time in total.
