IVA without having to involve house ?

[H_P]

Can you pay off an IVA without having to involve your house in year 4 by making increased monthly payments?

[Lisa2009]

The answer would probably be no.
The point of an IVA is to pay back what you can reasonably afford to pay back each month. Most, if not all of your disposable income would be used to pay the monthly contributions so there wouldnt be a lot of room to pay more each month.
The equity release clause is there to offer a lump sum on top of the monthly contributions, thus making it more appealing for your creditors.

[Adam Davies]

Hi
If your increased monthly payments mean that you have paid off your original debts and IP fees[they may also ask for statutory interest] then you will not have to release equity
Regards

[Lisa2009]

Yes of course as Andy says, if your payments pay the debt off in full plus interest then there will be no need for the equity release.

Sorry Andy i failed to add that on LOL

[Lisa2009]

But then surelly there would be no need for an IVA??

[goulda]

You might be interested to know my house forms no part of and is not included in my IVA - also I have no overtime clause but am repaying at the moment 45p in the pound to creditors

[cfnc]

I have kibda asked this question before and Melanie told me that if we managed to save up the amount from our allowed expenses or from 50% of our overtime/commission that we are allowed to keep, then yes we could use that to pay our equity amount.
But I think that it would be better to save the money and pay at the end.

Going try to find the tread and post a link for you if I can actually work out how to do that of course

Kirsty

[cfnc]

think this is right

http://www.iva.co.uk/forum/topic.asp?TO ... rms=equity

Kirsty