If you own your own home you will normally be expected to release some equity (if there is any) towards the end of the IVA via a remortgage.
If you can't then it is usual to continue the payments for a further twelve months.
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
In month 54 of your Arrangment a valuation will be done on your property. If your share of the equity is £5,000 or more, you will be asked to see if you can release a lump sum into the IVA for he benefit of your creditors by way of remortgage. If you can do this, then your IVA will end. The remortgage will not cost you anymore than half of what your IVA repayments are. For example if you are paying £500 each month into you VA, then your mortgage will not increase by anymore than £250. If you cannot remortgage and you do have equity, then you may be asked for a further 12 months payments in lieu of equity. If you're in negative equity at month 54 then your IVA will end at month 60.
Last edited by spike on Sat Dec 11, 2010 2:45 pm, edited 1 time in total.
The chances of anyone being able to remortgage at the moment are virtually nil. I've not known of anyone who has been able to do this.
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 think that Spike also needed to mention that the maximum remortgage level is 85% of the value of your property, unless your proposal dicttes an alternatie ratio.
