Hi,
I'm in a protocol compliant IVA which should have ended in December 2013 I have the usual clauses in relation to valuation and remortgage at month 54 for up to 85% loan to value. On this basis I have no equity to release.
I also have the 5k de-minimis clause that states that if there is less than 5k equity I do not need to remortgage, the IVA will conclude and will not need to be extended.
I find myself in a difficult situation as my IP is stating that the 85% ltv clause does not apply to the di-minimis clause, resulting in 10k of equity, and meaning that the IVA should be extended for a further year.
It has been my understanding that when calculating the equity for the de minimis clause the 85%ltv still applies?
I would be grateful for any advice
Just to throw something else into the mix, the de minimis clause states..
"In the event that the valuation undertaken at month 54 demonstrates that my share of equity is less than £5000, it is de minimis and does not have to be released, and there would be no adjustment to the IVA term"
This is an interlocking IVA and both my wife and I have this clause in our individual agreements, so would I be right in saying that if the equity was 10K, my share would only be £5000 and therefore de minimis?
You are in exactly the same situation as myself and my wife.
In our case we are classed as one iva, both had debts. We have equity of 30k but under 85% ltv and have battled for six months but they still class it over the 5k limit.
Our last payment was 28th Feb and we had a variation meeting today and we got 67% votes to close it down. The big banks said close it, but two smaller debtors want to extend it 12 months. The meeting is adjourned 2 weeks to try and get one of them to change their vote so we over the 75%, fingers crossed.
I will let you know how we get and its being 6 moths of grief tbh.
So in your case they will put 5k as the whole iva and try to get you to extend. I have found its shocking and unfair the iva business as no set rules and each ip does what they like........imo.
I just be glad to put all this behind us and feel sorry for the new ivas as it will get worse with 2014 rules. Fresh start my arse....
Latitude we will be treated as on, because all my creditors said close it down, but the two asked for extension are my wives and it wasnt even in the meeting they just asked for it.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb
You are in exactly the same situation as myself and my wife.
In our case we are classed as one iva, both had debts. We have equity of 30k but under 85% ltv and have battled for six months but they still class it over the 5k limit.
Our last payment was 28th Feb and we had a variation meeting today and we got 67% votes to close it down. The big banks said close it, but two smaller debtors want to extend it 12 months. The meeting is adjourned 2 weeks to try and get one of them to change their vote so we over the 75%, fingers crossed.
I will let you know how we get and its being 6 moths of grief tbh.
So in your case they will put 5k as the whole iva and try to get you to extend. I have found its shocking and unfair the iva business as no set rules and each ip does what they like........imo.
I just be glad to put all this behind us and feel sorry for the new ivas as it will get worse with 2014 rules. Fresh start my arse....
This is intriguing, because when Ive searched on this Ive seen numerous examples where an IP has tried to do this only to have been found at fault having not taken 85%LTV into account
That was definitely NOT how it was explained to me. I questioned this as I know I would be a borderline case with likely a very small amount of equity but not at the 85% LTV. I am banking on my IVA concluding and would be shattered if I was forced into a 7th year !!
I gather the clause isn't particularly well written, but my first thoughts are that, as they have, albeit informally, defined available equity as based upon 85% LTV, they cannot rely on a different definition of equity for the deminimis clause.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by mole
That was definitely NOT how it was explained to me. I questioned this as I know I would be a borderline case with likely a very small amount of equity but not at the 85% LTV. I am banking on my IVA concluding and would be shattered if I was forced into a 7th year !!
I too am gutted by this, especially as my IVA company was bought out by Creditfix in December and these guys seem to be interpreting the terms differently to the previous IP. I have some serious health issues and wanted to make sure my affairs were in order in the event that the worst happened.
I'm going to make a more detailed post in the hope that those more qualified than me have all the information they need to provide comment
If those of you are confused about the general interpretation of this clause in relation to your own cases, please post the property valuations you have received and the mortgage redemption statements so I can confirm how the majority of IPs operate the provisions.
