Please help - I'm so worried!!!!!!

[Kaz12]

I have a change of circs and my ip advised that they are going to try and close the iva with funds to date. I am almost 3 years in. Original payback would have been £10800 if I continued to the end of the term but can no longer afford payments. If they end it now Creditors wil only receive approx £7k as it's stands. Has Anyone been in this situ and been able to conclude their iva?? Also I have equity in the property. What happens with this as obviously I won't be able to remortgage. I'm so worried about all of this. I dnt want my iva to fail and I am worried my creditors could force sale and make me bankrupt. Please please advise. Thanks

[kazzafunk]

Hi - if you have had a change of circumstances then creditors may look favourably on closure. If your IP is happy to call a variation meeting then he/she must feel there is a chance of success.

Please try not to worry - if they refuse to accept the variation then you can go through all the options with your IP.

[MelanieGiles]

Many people find themselves in your position Kaz, and IVAs do get accepted on the basis that you have suggested due to changes in circumstances.

Have faith in your IP, as I am sure that they will get this through for you.

[Kaz12]

Thanks Melanie + Kazza. They asked me to gt a redemption statement + valuation. So I know I have equity. Hw will this be treated?? My IP has been really understanding and really good tbh. I just keep worrying about it. Just wanted to know if anyone has been in this situ. Thanks again.

[Michael Peoples]

Good to see your IP is supportive and hopefully creditors accept the recommendation to close the case down.

[Kaz12]

Thanks

[Kaz12]

Hi again, can you advise me on how equity is treated in these circumstances. I have a joint iva and we have approx 47k in equity. Thanks

[MelanieGiles]

What are the specific terms for releasing equity in your case Kaz12, and what is the value of your property now compared to the amount you currently own on the mortgage?

[Kaz12]

Hi Mel, The estate agents valued it at 160k + I owe 113k. I will have to check the actual terms. Obviously my circs are different than before so could creditors still accept concluding the iva on payments to date with equity in the property. Thanks.

[MelanieGiles]

Assuming that you have the usual 85% loan to value provision, 85% of £160,000 is £136,000 leaving you with £23,000 to attempt to raise.