How long can an IVA really last??

[aragorn]

Hi, does anyone know how long an IVA can really go on for?. Mine was originally set at 5 years then modifications stated that i need to pay for a further year if i cannot raise funds in a equity release after the fourth year, so it was explained that it could run for 72 months.

Now after a variation meeting when i needed to reduce contributions it will run a further 8 months to reach a 50p dividend.
Do you think it could run for 80 months ? or until the 50p dividend is met which if things stay the same will be after 72 months?

Thankyou in advance for the advice.

[Adam Davies]

Hi
I think that it can go on as long as this,however you may be able to raise equity and the extra 12 months will not happen,just the eight.
Many people would prefer to extend the IVA than release equity and even if it does extend an extra 20 months you can take comfort from the fact that your creditors are writing off half your debt and have stopped all interest.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[MelanieGiles]

You sound uncertain about the terms of the variation that your IP has proposed for you. Has this been accepted by creditors? If so, I suggest that you get them to explain this fully to you, as the express terms should have been properly agreed by you prior to them sending the revised offer to creditors.

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

[aragorn]

I have never spoken to my IP. However the customor care team told me that to make up for the lower payments i need to have the iva extended for 8 months. I did ask them how long would it last because of the modification on the original proposal - they could not give me a straight answer. i will have to put it in writing -takes so long.

Thankyou.

[ray_a]

Here it appears to me is a good example of the fluidity of an IVA where it can clearly be seen that these schemes are introduced to pay as much as Creditors can get over a period of time.

It would appear that the 8 month extension may be the last clause as longing as you keep the payments in which case it could go on if you have to vary the payments.

Interesting!!!!!!

Good Luck