I wonder if anyone else is in the same situation? I started my IVA 3 years ago and only one of about 8 creditors put in a clause stating at the 4th anniversary or thereabouts I needed to value my home and raise money to the value of part of the equity.
Unfortunately this was railroaded through by debt matters and I was it such a state at the time I was not really in a position to either understand or argue!!!
Since then my circumstances have changed quite a bit. I became the sole earner in the house,the IVA is in my name only, therefore I found myself needing to find more income. I left my job of 17 years and stared a job with more pay but soon I was made redundant. I am now in a contracting role. I have never missed a payment luckily.
What concerns me is will I be forced to take a SECURED loan to cover equity.
I opted for an IVA instead on bankruptcy as I did not want my home to be at risk - but it seems now that what was unsecured debt could now be turneed partly into secured, and therefore my home will be at risk. As I am in a contracting role my job is not 100% secure(not that any is at the moment).Is there any way this clause could be taken out?
I am really concerned about this and would like to sort this out before it is forced on me.
Any advice gratefully accepted.
You will need to check the exact wording of your proposal and/or your chairmans report to see what it says.
Normally you are expected to release a certain amount of equity in your property in year 4. This would be done via a remortgage if possible. If you can't remortgage,then your creditors may wish to extend your IVA by a further 12 months.
If the clause is there, I doubt it can be taken out.
If you are unsure, I would give your IP a call and clarify it with them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have already asked GT the question and they promised to get back to me, and as usual they did not, this is something I now expect from these companies. I first asked the question in October.
I am sure that Grant Thornton are in the process of looking into this for you, and as Kallis has stated the answer really lies in the wording of that creditor modification.
These clauses are not put into IVAs to make people sell their properties, but simply to enable an affordable contribution to be made from any asset which would be available under bankruptcy proceedings.
Give your IP another call, and if you can post the exact wording of that modification onto the forum, we can probably assist you further.
I will get the main guy at GT to chase a response for you. Don't worry.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
