getting cold feet with iva

[fuzzy_dunlop]

feel like im stuck between a rock and a hard place at the moment iva does sound a good option but as i have equity in my property and will have to release approx 80% of the equity in year 4 this will add further additional outlay for many years to come .
im i talking nonesence or are my concerns valid

anyone esle with a similar dilema or have gone through this process ?

[Abby]

new member, why will you have to release so much equity new myself so bit worried by this

[size5]

Your concerns are valid, and you need to take specialist advice as soon as you can.

Please visit www.iva.com and have a look round at the reviews etc, speak to 2 or 3 people and go from there.

Regards.

[Viki.W]

Hey Fuzzy, I completely understand that you're having second thoughts but if the other option is to struggle and use more credit to pay your debts then an IVA may be a godsend. Have a chat to your IP and she(I'm presuming it's Melanie) will be able to put your mind at rest if this is indeed the best solution. Keep posting and reading on here, it'll help. X

[kallis3]

Abby, most IVA's have a clause that in Year 4 you must try to get a remortgage of up to 85% LTV on your house (that's provided you own a house and have equity in it.) If you are unable to, then the IVA usually goes on for another 12 months.

fuzzy, I agree with Size 5, I think you need to talk to an IP about your fears. They will put you straight.

[angela18]

we were concerned about the equity release. but its nearly 4 year away and will cross that bridge when we come to it.. I've learnt life is too short to worry about things that are out of my control.. not taking each day as it comes, but in a IVA its each payday.. we manage with what we've got, which to me is great[:)]

[Soulgrowth]

And if the struggling to pay your creditors each month doesn't work and you don't do an IVA then you will probably lose your house anyway through bankruptcy [:(]

Equity in one's property is like money sitting in the bank and so it is only fair to offer creditors as much return on our debts as we possibly can.

Debbie

[fuzzy_dunlop]

ive decided im going for the iva got a statutory demand from a dca this morning and to be honest that has made me come to my senses

five years of financial pain seems for more appealing than twelve of mental torture

got most of the info i need to send to my iva company so its the cost of a large envelope and a stamp or two to get the ball rolling

should i keep on paying regulary into my dmp untill decision day ?

[Viki.W]

Hey Fuzzy, good luck with your IVA. Don't forget to take copies of all your paperwork before you send it and send it special or recorded. That's what I did anyway. X

[moretolife]

hi fuzzy dunlop...hope all goes well ...keep us informed

[fuzzy_dunlop]

will do thank for the replies looking forward to possibly getting my sanity back

[Adam Davies]

Hi Fuzzy
Take a step back and contact one or two more providers.This is a life changing decision and the company that you choose to propose your IVA will advise on continuing payments or not.
The new protocol dictates that any equity release must not cost any more than 50% of your disposible income[IVA payment].
Keep asking questions until you are happy with your next step
Regards

[fuzzy_dunlop]

cheers andy i will take all advice on board
i've plenty of questions as well god help you lot

[MelanieGiles]

No matter how many IVA providers you talk to - the answer reqarding the property will be the same under current protocol. You will be required to get your property revalued during the final year and raise new lending to a maximum 85% loan to value. This is currently subject to a deminimis level of £5,000.

It is understandable that you are reluctant to take out new lending at the end of a five year repayment plan, and most IP would agree that this is rather unfair, but I am afraid that we don't make the rules - just carry them out on behalf of the creditors. If this is something that you do not wish to consider, then a DMP is possibly a better option.

[Soulgrowth]

Sometimes making the decision is a releif in itself isn't it ... and it often needs something like the statutory demand you received today to spur you own.

Good luck.

Debbie