I have two more payments to make into my IVA and for the last few months have been in a stressful battle with Payplan regarding my equity release. 85% LTV shows my equity at £1390 which is how it is calculated by the example on government IVA protocol but Payplan are saying this is wrong and my equity is 85% of my actual net interest which is just over £12,000. I'm unable to remortgage and can't find a secure loan company who will lend me the £1390 required to finalise my IVA. Do you know of a lender who would be able to help? The thought of another 12 months in an IVA is just destroying me. Thankyou
It should be 85% ltv - check exactly what it says on your paperwork. If you have less than £5k equity then you should be finished.
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
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
As Kallis says, check your paperwork to see if it specifically refers to the method of calculation. Some clauses are badly worded and can be interpreted in the way that Payplan ( and Aperture) have started doing. However some are not !
If they stick to their method they will not be looking for £1300 - odd but nearer £9k, which makes a 12 month extension somewhat preferable.
Back at grass roots -- were you happy with their valuation of the property ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We had our own valuation done (free local agent) so I would always recommend that.
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
This is the way both Payplan and Aperture ( then known as Grant Thornton) used to calculate equity -- this is also the method set out by the IVA standing committee when Grant Thornton sat on that committee !
However, for reasons best known to themselves ( creditor coersion / greed or IP greed ) they have both decided to use a totally unintended way of interpreting the clause to their own advantage.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I had this issue with my I.P. They interpreted equity as 85% of my interest in property not 85% LTV. Took a few strong emails to get my I.P to approach creditors in the end, who were given 28 days to respond to agree or otherwise with their interpretation. They didn't reply so I.P accepted due to the uncertainty around equity clause to accept my view point. Keep pestering and maybe try to convince them of this approach.
You just keep pestering Payplan - they usually back down.
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
Thanks for all the replies. My case officer put my concerns to my IP who basically agreed with the calculation of equity but is willing to put it to the creditors for their decision as he cannot take the decision himself. However she did say if the creditors don't agree they can make me bankrupt and after nearly 5 years complying with my plan this is the last thing I want. Payplan are treating my concerns as a complaint and I received a call from a compliance officer who said I could have another valuation on my house but it would need to be 18k less than my estate agent valuation which is highly unlikely or I could get a family member to make an offer of a full and final settlement! Payplan still aren't responding to my questions about their misleading website and if they follow the Government IVA protocol. I don't know what to do next just seem to be going round in circles and as from today only have one more payment left of the 5 years.
The job of the ip is to do exactly what they are passing the buck on - and that is make a decision.
Complain via the insolvency gateway and also state to your ip that you want them to confirm that they will put you in a situation financially if the complaint is upheld I.e. They will compensate you.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Ignore the threat of bankruptcy!!! Payplan are well known for doing this. It was put into my proposal for a full and final and I insisted it was taken out, which it was.
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
chances are - creditors will not reply. This happened with mine - creditors ignored letter and after 2nd letter and timescale set , I.P agreed to my calculations.
