Going for remortgage to finish IVA early

[mitch]

So i have gone for a remortgage as we have equity in the property, so we can settle our IVA. There just doesnt seem to be an alternative. I am just praying that we will not lose the house.
Any advice from any experts please.

[mitch]

Sorry not very good at this IT stuff. There was two parts to my posting but dont no where the other half went. Basically been in IVA since early last year. Unforseen circ has given us a drop in income of approx £1150/month. IP gave us 3 months break in order to find me full time work. Have tried very hard but no joy yet. Jan payment due, cannot pay. Going for remortgage to finish IVA early,as we have a little equity. Getting a little worried though as the remortgage could take till mid feb to go through.Any advice welcome.

[MelanieGiles]

Just keep liaising on progress with your IP in the meantime. If you are out of work, are you sure that you are going to be able to fund a higher mortgage?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mitch]

Hi there melanie, thanks for prompt reply. Im not unemployed, hours have been reduced. My husband took on a new job with a drop in money. I have a few jobs that I have applied for, I will get full time again. The IGroup have accepted us for a remortgage, they are dealing with IVA. Question: Why is the settlement figure (from IVA) so little compared to the figure after 5 years. The estimated figure given to us for remortgage is also approx £150/month cheaper than our existing mortgage. However my husband has the 4 year clause in his. Would this stop us from selling in a couple of years.

[MelanieGiles]

Hi there

I am afraid that I don't really understand your post, and if your husband has the fourth year remortgage clause he will need to get his supervisor's permission to raise equity money. If you could post some more information, then perhaps we can help further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mitch]

Sorry Melanie i do tend to babble on.
We were given 3 months grace paying the IVA due to my hours being reduced and not being able to meet our payments. They said that they would get in touch with us to discuss matters, but in three months not one call or letter. I want to remortgage to raise the equity because i dont want it to fail. As my husband has the 4 year clause in his do you think it would be possible to pay mine off if they refuse him. Out of interest do you know of anyone who has got out of an IVA with the clause.
Mitch

[mitch]

I forgot to say when i got in touch with them to ask for a full and final settlement figure, they gave me both and never mentioned the 4 year clause.
I must say as many already have you are a blessing to people who have made financial errors in their lives. Thankyou.
I also must say we entered the IVA with closed eyes, didnt understand it like i suppose i should have.
Kind Regards
Mitch

[MelanieGiles]

It is my pleasure to help you in any small way I can, and your gracious comments really spur me on to do more! Thank you.

With regard to your IP and the settlement figure, if you have been given a ballpark, is this something that you would be able to borrow. Your IP must be aware of the equity raising clause, and has taken that into consideration in providing you with figures.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi Mitch
People have managed to remortgage and settle their IVA even with the fourth year equity release.It will depend on how well your proposal at the variation meeting is written.If it shows that your payments on an ongoing monthly basis are at risk,due to your reduced income,then your creditors may well prefer an early lump sum now rather than waiting.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[mitch]

Thankyou again Melanie and to you Andy Davie (pleased to meet you) well its just not possible to meet our payments, since we took on the IVA my husband lost his job, he managed to find one after about 6 weeks but had to take approx £600/month drop in wages. Myself i had to take a reduction in hours, (works say so not mine) so the reduction in my wage is approx £400/month. I have been applying for full time work but no joy as yet. So basically i do hope the decision of F/F can be offered to us.
I will keep you informed.
God Bless You both
Kind Regards
Mitch