how much of equity will be needed ?

[flaps1]

hi - would you be able to explain a couple of things for me? i have been accepted last wednesday for an IVA but have a couple of questions that i have just thought of - there are probably answers on the forum............in month 54 i understand that i may have to remortgage if i have any equity etc - is there a limit apart form the standard £5k?? for example if in month 54 i have £15k equity, how much of it will be needed? another question is if i manage to save any money before the 12 month review, say £1k, would i be expected to hand it ALL over to the creditors? sorry to ask! flaps1

[MelanieGiles]

If your IVA has been put forward on the basis of the IVA protocol, then you will be required to have your property revalued during the final year of the arrangement and seek additional lending based upon 85% loan to value. If the amount to be raised is lower than £5,000 the protocol states that no monies will be due, but a number of creditors are now modifying into the proposals that additional payments must be made in lieu of the equity during a final year.

If the savings you have made come from the allowances you have been given by your creditors, these will not need to be handed over to creditors - but if you have the 50% uplift provision some of this money could be captured under those provisions.

It is always best to ask specific questions like this directly to your IP who has detailed knowledge of your case.

[flaps1]

thanx for that melanie it has cleared it up!