I am now in my final year of my iva so I had to get my house valued, I have been under a lot of stress lately and so my iva man valued my house and told me I had equity in it, He is now saying I have to find another £2500 per month for the next year on top of my monthly payment and I am suicidal at the thought. Can he do this?
No he cannot. What he can do is written down in your agreement and would usually be 12 months extra payments at the normal rate if equity cannot be released. Check your own equity release clause in your proposal and tell us what it says.
Who are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
This really depends on your IVA and the terms. If you were obliged to bring in the equity and you have £30k this would explain things but is clearly impossible. You need a variation to exclude the property based on twelve payments at the affordable level. If you have HMRC as a creditor this may not be so easy so provide a little more info.
Thank you for your advice. I am going to get a meeting with my ip next week as advised. I was supposed to get my house valued but I have been ill with depression and stress and didn't do it so I have now had a letter saying I am default even thought I have never missed a payment.To top it all off I have to close down my business as well as I just cannot cope. My accountant has advised me to go completely bankrupt but I am so so scared of losing my house.
Follow the advice of your accountant and IP. If things are at the point of bankruptcy you may find that your house will not be lost .. not everyone who enters bankruptcy looses their house xx
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
You may be able to close the IVA down based on what has been paid to date. Bankruptcy is bot inevitable and hopefully your IP will be able to help. It is good that he/she will sit down and meet with you as this can be vital.
Just a quick update on my position and how relieved and happy I am. Had my house valued myself and it is below the equity value limit so my house is safe and I have been informed I only have 2 more payments and I am DONE ! Thank you everyone who listed to me and advised me and I must admit that now it is nearly over , going into an iva was the best thing I have ever done
