should I look at trying to end IVA early

[colins]

I already have an iva which will have been going for two years. When should I look at trying to end it early. I'm fed up feeling tied in to something and still paying out hundreds a month.

[MelanieGiles]

Hi colins and welcome to the forum

When you signed up for the IVA you agreed to make payments for five years - just the same as the loan and credit agreements you originally took out. Unless your circumstances have changed to make you struggle to make the payments, or you have a benefactor who would be prepared to give you a lump sum to offer to creditors in full and final settlement, I am afraid that you are in the agreement for the duration.

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

[colins]

We orginally owed £100k in debts. We have been paying £500 a month for two years now and are expected to take out more on our mortgage in year 5. What is an acceptable lump sum then that creditors would expect me to offer?

[Adam Davies]

Hi
if you did not have the final year equity release then a lump sum to finish early would be tempting for your creditors.However as you have this clause I think that you will find that your creditors would rather wait until year five as your equity will have increased even further,giving them a larger dividend.
Your monthly payments will return about a 25p dividend on your 100k debts so really even with the final year equity release,normally 85% of your equity, they will probably still be writing off a fair proportion of your debt as plans are on there way to limit remortgages to about 60% of your disposible income[in your case £300] and this should allow you to release about 40k
Try to get through the next three years because it will be worth 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

[olympic_torch]

Good Afternoon Andy.
How would the proposed 60% limit affect our IVA?
We are due to pay in a set amount of 20k in year 4.


Aucto Splendore Resurgo.
(3 down, 57 to go)

[Adam Davies]

Hi OT
I think that the 60% limit may only relate to new IVAs taken after this comes into play.Maybe Melanie knows more about that.?
Your 20K will always be subject to affordability as seen by your mortgage provider.At the end of the day no one can guarantee that you will be able to raise it.If you genuinely can,t then a one year extension to your IVA can be agreed.
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

[Adam Davies]

By the way OT do you live anywhere Birmingham ?
I have an informal meeting lined up for the 4th Sept.
Would be good to meet you and Mrs T

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

[olympic_torch]

Thanks Andy.
What normally happens with a remortgage whilst in IVA?.
Would i be able to remortgage through my present provider or would they not touch me with the proverbial
bargepole?

Aucto Splendore Resurgo.
(3 down, 57 to go)

[olympic_torch]

Andy.
Not far away, just over an hour to the airport from
here.


Aucto Splendore Resurgo.
(3 down, 57 to go)

[Storm]

Who are you with Olympic ??

[Adam Davies]

Hi
I would think that if your payments are upto date then you stand a good chance,they may even not bother with a credit check,just a letter from your IP confirming that the IVA is upto date.If not then there are plenty of sub prime mortgage providers out there.
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

[olympic_torch]

Storm.
My soul belongs to the Cheltenham & Gloucester BS.

Aucto Splendore Resurgo.
(3 down, 57 to go)

[Adam Davies]

Great,I will email you full details early next week and hope to meet you both.
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

[Storm]

Mmmmmm I thing that pole is coming out......

Ideally use a good broker... the rate won't be much higher than the high street and you can get fixed rate deals. Typical L2V = 85-90%. Some lenders prefer you to have been in IVA for +12 months

[olympic_torch]

Storm.
Thanks for that. I had a feeling that would happen.
Its often been said i am that unlucky if i fell in a barrel of breasts i would come out sucking my thumb.
We have a "No tinkering for 24 months" clause on our
IVA in any case.
What if the 85-90% L2V is insufficient to cover what
we have to find?

Aucto Splendore Resurgo.
(3 down, 57 to go)