Unsure - IVA or DMP

[markwebs]

I'm unsure exactly how the equity release section of the IVA works. I fully understand that they will want me to remortgage upto 85% but my situation won't allow this (I think) for two reasons.

1) we borrowed 95% LTV. We are still at the rate now and cannot see the extra 10% coming (though no-one can predict this).

2) Financially we had more income and so could borrow the amount needed to secure the mortgage. We wouldn't be able to borrow anywhere close to this now. What happens in this case?

I keep seeing the words they MAY ask for a further 12 months payments, which I have no problems with, but can they force sale, force bankruptcy if you aren't physically able to secure the finance?

Please help as an IVA would be the best solution for me.

[Shining]

Hi and a very warm welcome to the forum.

Pleaes take a look at www.iva.com for a list of companies and their IP's, read some reviews and contact at least 2-3 companies, you will get free impartial advice tailored to your situation and hopefully they will help you move forward.

Normally the equity release happens in the 4th year of your IVA and a lot of proposals state that if you can't release 85% LTV an extra amount will be payable by extending the term of the IVA by 12 months. Each IVA is individual and therefore all our conditions are different to. There are obviously some common ones but there is always exceptions to every rule.

I hope you find the correct solution for you and I do know the professionals who post on this site come highly recommended but do take a look at the link above and hopefully you'll get advice specific to you to enable you to move forward, do let us know how you get on?

I doubt after 4 years of paying into an IVA it would be beneficial for anyone to be forced into bankruptcy, one of the professionals will be along shortly to comment on this.

[kallis3]

Excellent advice from Lesley.

It is highly unlikely that they will force a sale or make you bankrupt. You will probably have the extra 12 months added on the end.

Do visit the link that Lesley posted and give one or two companies a ring.

[markwebs]

Thanks for taking the time to reply.

I'm speaking with PayPlan at 5pm today, I'll let you know what they say.

[kallis3]

Give a couple of others a ring as well - it can't hurt.

[markwebs]

I will do - been on that IVA.com site and there seems to be a couple of them worth calling. Thanks again.

[kallis3]

It's an excellent site.

Let us know how you get on with all of them.

[markwebs]

Currently going through the process ATM, PayPlan sorting everything out. Should be a couple of weeks now then hopefully the full process should be in full flow.

Will keep you updated.

[Shining]

Nice to hear it's going through with PayPlan and they have good reviews from some posters on the forum so here's to a smooth journey for you. x

[MelanieGiles]

No-one can accurately predict what will happen if there is money technically to raise in year 5 - and this will only be if you have a mortage of less than 85% LTV - but my own view is that mortgage companies will not be lending at this level.

You will need to weigh to up the advantages and disadvanatages of both the IVA and the DMP - but if the DMP is predicted to last longer than six years, and IVA - even if you have to make the extra payments - amy seem far more secure and worthwhile.

[markwebs]

IVA accepted as proposed - 18p in the £!!!! Only modifications are around the fees PayPlan are charging, and I have to produce my pension documents to show that i am only paying in the minimum possible contribution.

Amazing, so relieved!!!

[kallis3]

Excellent news markwebs - so very pleased for you!

Good luck and keep posting so we know how things are going on.

[MelanieGiles]

Interesting to see that the firm which many of the creditors actually promote - under the illusion that fees are not charged - are also having their very commercial fees clipped as well!

[Shining]

great news for you and I hope your IVA journey is a smooth one for you x