You will have to seek normally two attempts at remortgage and a current valuation of your property. If you have no equity then no release possible if you do have equity you will have to check your own conditions on the initial agreeement to see if you only have to pay money accross over a certain amount, some people it's over £5k etc. If your equity is over that amount and you can't remortgage due to the current financial climate then your IP will have to put forward a variation meeting to ask them to accept 12 months extra in lieu of the equity release. You may even find this is included in your original paperwork with a proviso that the creditors have no objections but I haven't so far heard of any who have.
Yes, as above. Get a valuation of the property, seek to re-mortgage with 2 or 3 different companys. If you are unable to re-mortgage, you will need the mortgage companys to provide you with a letter stating that they are unable to help you. Pass this paperwork to your IVA company. They will then have to call a variation meeting to see if your creditors will accept a further 12 months payment in lieu. Prior to the meeting you should be provided with the proposal that they intend to put forward. Our variation terms were 1) to pay a further 12 months at the current monthly payment rate in lieu of the re-mortgage. 2) To remove the property from the agreement and 3) that the minimum dividend requirement be waived. You will need to agree these variatiions prior to the meeting. In our case, this all went through with no problems.
In the unlikely event that you are able to remortgage, your extra monthly payments cannot be more than 50% of your IVA payments.
Is there anything in your proposal/chairmans report that says about the extra twelve months in lieu? If so then a variation meeting won't be necessary, you'll just carry on paying for the extra year.
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.
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Even if included in the paperwork some people have a proviso clause that the creditors still have to not object to it continueing. if that is the case even without a variation meeting they would still need to agree for the 12 months to be accepted as per the proviso.
An important thing with this is that if the expected equity release was quite high and a minimum pence in the pound was included in the original paperwork then an extra years payments might not achieve that return and if that is the case I would personally discuss with the IP **NOW** and not in a years time whether a variation meeting would be beneficial in order to ask the creditors to accept the lower return especially as precedence has shown they have accepted for other people it may stop your ordeal being further extended.
Don't think mine does - it just says that if we cannot raise the money then the IVA will continue for an extra year. It was actually a modification on ours as it wasn't in the original proposal.
We just have an expected dividend, not a minimum one. Be interesting to see what happens when try to remortgage later in the year.
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 believe mine had an expected dividend to start with but my current return is higher than the original expected return. I wonder if one of the professionals can pick up on this and advise if the expected return can be deemed a minimum return by the creditors or whether the paperwork has to specifically state minimum. Would clear up a grey area straight away.
mine has minimum divi expected,but as they put up the payments at my original meeting it was above that from the start.its gone up again now as i have more desposable income so im not to bothered that that wont be met.i have the de-minus of £5000 or xtra 12 months if i cant re-mortgage already in my proposal.will be doing this next year so that will be fun(not)
cc received 6th January 2014 now upwards and onwards
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
thank you for all your answers its a great help just made 44 payment and they have all remained the same never changed and nor have i missed one so thats good
The original contribution I offered was increased by a modification in my original chairman's report; then I paid a further increase on my contributions for 22 months while I had extra disposable income, but it then went down to the original payment as my disposable income was eaten away by inflation and the pay freeze. I am awaiting word as to what happens with me now. As I have unsurprisingly been unable to get a remortgage I think that my IP is going to go for the 12 months further contributions in lieu of equity - as it states in my oriignal chairman's report. My problem is that if I do that then the minimum dividend [specified in a modification] of 52p in the pound will nowhere near be met; in fact, the total dividend will, as I calculate it, be slightly less than my creditors could have got in bankruptcy! As I say, my chairmans report has the stipulation that if I am unable to remortgage then I will pay the extra 12 months,subject to my creditors having no objections. But on the basis that the dividend will be so low I can hardly see them settling for that. If they ask for another 24 months it will break me psychologically and financially - another 12 payments with no pay increase and everything going upall the time, plus repairs and stuff that will inevitably come along - is going to be a tight squeeze whichever way one looks at it.
I can see that creditors would go for the extra 12 months in most cases, but I fear for my own because the maths don't work out well.
Last edited by brokebryn on Sun Jan 29, 2012 5:48 pm, edited 1 time in total.
Last monthly payment made 3 June 2013 after 6 long years. CC issued 21 August 2013, but, er, lost in the post. Finally got it 17 September.
My minimum dividend clause was removed as part of extending by an extra year. The additional year of payments came to about 50% of what I was supposed to release in equity, and the variation was accepted.
