NO EQUITY IN 5 YEARS

[FREEDOM31]

Hi Im in the 2nd year of my IVA everythings fine apart from being continuously skint lol!! Its just the credit crunch has got me a bit unsettled when my IVA was approaved it was for me to pay the 60 payment of x amount and in the 5th year remortgage and introduce another £5000 if I have any equity by then. They Insolvency practioner was aware when the IVA was approved that we have no equity and with the current climate I would be very surprised to have any at the end of the IVA what happens then it that circumstance? I really dont want to end up having it dragged on an additional year would rather go bankrupt. Any advice

[kallis3]

We have a similar clause, although I would rather it went on for twelve months extra rather than have to take out a remortgage as we will both be OAP's then and I don't want a mortgage still hanging round my neck.

I suppose it all depends on what your chairmans report says. I would check that

[no money eva]

I am in a similar situation started IVA in April this year. My chairmans reports states that I have to have over £5k equity from my share of the equity for them to realise the equity and only if I have over £5k can they extend IVA if I am unable to remortgage (there is no way I will have over £5k equity by the end of it). Payplan explained that if that was the case the IVA would conclude on the 60th payment - no equity release or extension if my equity share is under £5k. Also i can only remortgage upto 85% LTV and we already have a 95% interest only mortgage. I have no doubt my IVA will conclude in month 60.

Hope this helps.

[MelanieGiles]

Freedom - you cannot possibly mean that you would go bankrupt after paying for a full five years into an IVA! That would be madness, especially as your IP would revert to ascertain creditors wishes if you really could not raise the equity sum pledged.