IVA approved...but!

[Leigh.p]

Hi all,

Sorry for the long post...
I am pleased to share that my iva was approved today after a long road of deliberating/being anxious etc, with the help of the lovely Keith White at Vincent Bond and Knightsbridge. I am pleased because there was really no alternative for me and I have been granted a manageable payment which I'm hopeful will succeed.
However....I am slightly worried about one of the modifications in place. Long story, I owned a flat with my ex husband which I left 3 years ago and rented a home with my two children. My ex kept the flat on and it was agreed I would pay no more into it and would effectively wash my hands of it thereon in. He has been unable to remortage on his salary alone, or remove my name from it but this hasn't caused any problems until now. The creditors were asked to exclude the mortgage from the iva (it is a northern rock together mortgage) but the unsecured loan has been included and one of the stipulations is that I attempt to remortgage after 4.5 years to release equity, but if this is not possible I must continue for 6 years on the iva. The latter is ok by me but the remortgaging part is worrying for me as I don't want my ex to suffer as a consequence of my actions. We are not on good terms and any dettriment to him will make things 100x worse. The flat is only worth about 75k and about 75k is currently owed. It is unlikely to increase in value but obviously 4.5 years down the line the mortgage will have been chipped away at.

Do I have anyThing to worry about here? Obviously 4.5 years is a long way off.. but as it stands I am currently single, on a low income etc so it would be very unlikely anyone would touch me with a barge pole to remortage, right? I don't care about implications for myself but any on my ex is going to mean absolute hell for me, basically.

Grateful for thoughts

[Foggy]

Hi. For the equity clause to trigger there will need to be at least £10k equity ( your share being the £5k trigger ). If there is not this amount of equity there will be no requirement to address equity, nor to extend by the extra year.

If there is more than £10k, you will have to attempt to remortgage -- which will, more than likely fail and the extension will kick in.

[Leigh.p]

Thank you Foggy. I think there is unlikely to be 10k. I guess I just have to forget about it now and get on with life and worry about it when the time comes. I have no other option than to begin the iva so I guess I'll just have to roll with it!

[luluj]

Go with it - you will soon find your feet and living in an iva is not as bad as people think once you get used to the budget etc. Your equity will change in five years and therefore don't fret over it now x

[BethanyBrooks]

Hi all,

Sorry for the long post...
I am pleased to share that my iva was approved today after a long road of deliberating/being anxious etc, with the help of the lovely Keith White at Vincent Bond and Knightsbridge. I am pleased because there was really no alternative for me and I have been granted a manageable payment which I'm hopeful will succeed.
However....I am slightly worried about one of the modifications in place. Long story, I owned a flat with my ex husband which I left 3 years ago and rented a home with my two children. My ex kept the flat on and it was agreed I would pay no more into it and would effectively wash my hands of it thereon in. He has been unable to remortage on his salary alone, or remove my name from it but this hasn't caused any problems until now. The creditors were asked to exclude the mortgage from the iva (it is a northern rock together mortgage) don't miss a great chance to participate in mr green tournaments on weekends but the unsecured loan has been included and one of the stipulations is that I attempt to remortgage after 4.5 years to release equity, but if this is not possible I must continue for 6 years on the iva. The latter is ok by me but the remortgaging part is worrying for me as I don't want my ex to suffer as a consequence of my actions. We are not on good terms and any dettriment to him will make things 100x worse. The flat is only worth about 75k and about 75k is currently owed. It is unlikely to increase in value but obviously 4.5 years down the line the mortgage will have been chipped away at.

Do I have anyThing to worry about here? Obviously 4.5 years is a long way off.. but as it stands I am currently single, on a low income etc so it would be very unlikely anyone would touch me with a barge pole to remortage, right? I don't care about implications for myself but any on my ex is going to mean absolute hell for me, basically.

Grateful for thoughts

Really long post, but overall good points