is the outstanding debt written off

[s.bo]

Once an IVA agreement has been made and you have made all your monthly payments for 5 years, what happend next if you have equity available in your house, is the outstanding debt still written off or is it taken from the equity available in your house ?

[kezza]

Hi there,

that would depend on the terms of the agreement. If there is little or no equity now they may not include a forth year release of equity. IVAs are just that, individual. depending on your circumstances and what is agreed at the creditors meeting will depend on what you have to do.

[scaredkez]

hi s.bo
how much equity do you have in your property, if it is more than you owe in debts an iva may not be possible as they would say you were not insolvent and may suggest a remortgage instead.
but as kezza says if there is any equity in the property they usually ask in year 4 of the iva for an amount to be released which is individual to circumstances, i believe this to be a grey area also as to when they decide how much the equity will be as your property may have increased in value by year 4, it would be something to discuss with your ip when your proposal is being drawn up
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[neverending]

Hi
Just to add to the excellent advice already given.
If your IVA does not have a clause relating to your property then once you have concluded your IVA the remaining debt will be written off,regardless of the equity in your house.
If you have the fourth year equity clause then you will be required to remortgage and provide a lump sum into the IVA,then any remaining debt will be written off.
Be sure that you fully understand the equity release clause if it is a part of your IVA.
REGARDS