Pay off early with Equity

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one month at a time

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Post by one month at a time » Wed Jun 27, 2007 4:21 pm
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Hi We are new to this and need some help if any one can! - We have had a IVA for 16 months and we have just had our house valued at £300k we owe £190k and after reading our proposal documents we understand that the estimate amount due back from releasing equity in our property is £42k - We would like to sell our house and offer our creditors £75k - on the original paper work they accepted £70k,
The whole process has not been pleasant and we need to get out of the IVA - very bad experience!
Thank you for reading this and Good Luck S&M

one month at a time!
one month at a time!
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Adam Davies

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Post by Adam Davies » Wed Jun 27, 2007 4:43 pm
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Hi and welcome
What is the actual provision in your IVA agreement for equity release ?
Is it a certain percentage of equity in the fourth year ? Or is there a set sum ?
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp
Andam Davies
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one month at a time

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Post by one month at a time » Wed Jun 27, 2007 4:48 pm
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Hi and thanks for coming back to us, in the paper work it says 75% of my equitable interest is to be released which is approximately £42000. I am willing to sell my house early to get all the equity released and have enough to put a deposit on a new property. this would mean that i would have paid ££80k of a 100K debt.

one month at a time!
one month at a time!
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Adam Davies

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Post by Adam Davies » Wed Jun 27, 2007 4:58 pm
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Hi
The problem that you have is that your creditors may want to wait until the fourth year as your house value will,probably,be worth even more and they will get an even bigger chunk.You may end up paying your full original debt.
Probably not what you want to hear and probably not the situation that you expected when you first entered into your IVA.
However it is still worth consulting with your IP and seek their view on it.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp
Andam Davies
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MelanieGiles

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Post by MelanieGiles » Wed Jun 27, 2007 6:52 pm
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I agree with Andy - there is little chance of getting creditors to accept that deal if they feel they can hold out for more. Is there any particular reason for wanting to end the IVA early, rather than just being fed up with it all?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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