I will have completed 5 years of my IVA this October and have already revalued my house for DFD - I only have about £2k equity. DFD called and said that it is unlikely that I will get a remortgage approved (especially as my wife has been made redundant) but they have said the IVA could be extended by a year.
Can they do that?
Surely that is penalising me?? God only knows I have been looking forward to finishing my IVA!
My creditors knew the risks 5 years ago just as I did when we signed up to the IVA agreement - so shouldn't they just be happy with the money they have?
My IVA contract says I have to pay 100p in the pound (but due to the current state of things - the lack of equity leaves a shortfall). Any help or advice would be greatly appreciated as I want some facts to go back to DFD with when we talk again.
If your original IVA stated that you were to pay back 100p in the £ then that is what you have to pay. Presumably from a re-mortgage of your home which 5 years ago had enough equity in it.
I suggest you ask DFD to do a variation to either say that is all I can pay being what you have paid in over 5 years or at worse extend for another 12 months only.
Let us know how you get on. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Don't forget that when you took your IVA out, I doubt any company would be thinking about house prices plunging as much as they have by the time it ended.
Think of it this way as well - if your IVA is extended, then the payments for 12 months would probably be a lot less than you would be paying if you remortgaged and you will have paid your creditors in full. Not many of us can say that.
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At the end of the day it rather depends upon what it says in the actual proposal - some of the earlier equity release provisions allowed for an additional year's contributions in the event that equity could not be raised.
I currently am in an iva and have an equity release clause am i right in thinking that if i dont own any property then i will be unaffected. I wont have any property but will they make me pay an additional 12 months payments?
The £5,000 or less provision comes from the IVA Protocol which was introduced last year. If your IVAs are protocol compliant, it should make this clear on the front page. The majority of IPs are now using protocol compliant proposals so I understand.
