Present Situation

[mjacob]

Hi all,

new on here,

Started IVA 4th Oct 2005, through Freeman Jones who have been great to be honest.

Started off paying £525 permonth, but we are paying £305 now

We have gone through a variation due to baby, but at present we are working hard to get our outgoings down, reduce bills etc to offer us more money at the end of each month,

Total monthly out including IVA and mortgage is £1652.00 we get £140 per week to our cash card,

We pay £76 per week to the IVA, which gives return of 26p.

Just about to carry out 6mth income/expenditure review and its looking like we are going to have to increase contributions based on
the spare money we have each month,

Car insureance has reduced,
General living expences have increased

Is there any standard figures for these or do we just need to put down what we think we need per month,

On another point, we are a little unsure about trying to go for a Full and final, there is approx £20k in the house at present.

Do i just ask the IP what the full and final figure would be and then suggest re-mortgage,

Concious that we need complete as soon as possible to get our names clear but also aware that the remortgage may cost us more per month than if we were paying into the IVA.

I Will leave the questions at that for the time being, may have some more soon,

Thanks




Hopefully this will sort things out !

[MelanieGiles]

Given that you have been with your IP for so long, and appear to have a very good relationship with this firm, your first point of contact ought to be with them on these matters. Just a couple of points though - there are no standard guidelines which relate to your individual income and expenditure - so just put down honestly what you spend and let the IP appraise this. Also if your property was included within the IVA, you may have difficulties in persuading creditors to accept a full and final settlement now, if you still have the ability to fund ongoing contributions.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mjacob]

Melanie,

Thanks for your quick response, and the advice, you can feel a little isolated at times,

Ok will speak to them on the first point and will discuss second,

At our last 6mth review FJ made a verbal suggestion that we could maybe complete in year 3, at the time i thought, that would be nice, and suggested that we looked at this a little more at this review.

Would that be possible, based on the figures, we owed £70k

Any thoughts

I will carry out the review and submit, follow up with a call as i always do, is there any spcific questions i should be asking?



Hopefully this will sort things out !

[mjacob]

Melanie,

Sorry one more question,

When you complete, does it take 1 year for your name to be removed( do you have to contact the relevant parties to make this happen) and can you then apply for a "normal" mortgage, rather than prime.

How long until you can gain credit again, not as though we really feel like getting any.
I mean essential like 1. Car HP - we do need a new car.

Thanks in advance



Hopefully this will sort things out !

[Adam Davies]

Hi
If you do have a F+F agreed then once funds are paid over and the dividend cheques sent out[upto 3 months] you will be issued with a completion certificate and your name will be taken off your insolvency register.However the IVA will remain on your credit file for a total of 6 years from the date of your IVA starting but you can send a copy of your certificate to the credit reference agencies and they will mark your IVA as concluded,but it still remains on your file.
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

[MelanieGiles]

Again, I cannot answer whether I feel a full and final settlement is a sensible option for you, without knowing whether your property has been included in the IVA. Can you confirm this please?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mjacob]

Hi Mel,

Property has been included, they seem to think that this is 95% of the equity,

Ok, the house is worth £120k, we have present mortgage of £88k, does this mean that they can take 95% of the equity, leaving us nothing for a depostit on new house etc,

I have looked through all of the paper work and cannot find this figure of 95%, so have requested copy final paperwork,

The Comparison of estimate outcomes sheet which has always been suppied shows that the Interest in House figure is at £2880, which based on the other monthly payments equates to the agreed dividend of 21.34p.

How can they then take an additional lump sum out of the house that will mean we actually repay alot more.



Any thoughts,





Hopefully this will sort things out !

[Adam Davies]

Hi
An equity release in the fourth year is a fairly standard clause and should have been discussed and explained to you in full prior to the IVA being accepted.
On your figures you would need to offer 95% of the available equity,so if you could remortgage for 85% of the house value that would be 102k,less your oustanding mortgage of 88k would mean that you could release 14k.You would then only release 95% of this,£13300.This would leave you £18700 equity in your house.
You need to get the 95% clarified with your IP
Hope this helps
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

[mjacob]

Hi

The equity release is part of our IVA.

This is stated as 100%, we have to gain two mortgage offers, and they choose the one that offers the most for them.

What would they expect for this.

House has been valued at £119,000
Present mortgage is £88,000

How did you get the 85% of your house value?

Cheers for the help

Oh and they have accepted the revised monthly income/expenditure amends, which means that we will recieve £180 per week onto our cash card.

Me and My wife have talked and we agreed that most people dont have £720 spare a month, after all of our bills. Petrol and all others food etc has come out of it but more than most,





Hopefully this will sort things out !

[Adam Davies]

Hi
85% of 119k is £101250,your outstanding mortgage is 88k so your equity is £13250.This is the amount that you would be required to pay over if those figures were the same at year four.There are fees to take into account also[early redemption fees,legal fees,valuation fees etc etc]
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

[mjacob]

Ah! the penny drops

I understand now, when you remortgage you only have to have 85% of teh value - i thought is was 100% Mortgage, allowing the IVA to have 100% of the equity,



Makes sence , thank you

Hopefully this will sort things out !

[Adam Davies]

Hi
85% seems to be the max at present that Banks will loan due to the fact that you are in an IVA and the recent sub prime issues surrounding the industry.
However it may change nearer the time as banks become confident again and a 90% ltv will be available.
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