We're just going into the last year of IVA, if there is equity to be released and we can't get a remortgage then if we were able to get a secured loan then would it mean we wouldn't have to pay the extra year. Any advice appreciated.
Your IVA would cease once the funds are released and you can then remortgage two years from now to clear it. There are advantages especially since the IVA completes, the loan cannot cost more than half your IVA payments and any overtime, bonuses etc are yours to keep afterwards.
Our IVA payment is nearly £800 and we only have approx £15000 equity so a secured loan payment would be quite abit less than 50% of our IVA payment. If I've worked it out right.
You may not have enough equity to be able to release some but worth having a word with Shaun anyway. His firm has access to these products and he can advise whether or not it would be available and appropriate.
I agree with all of the advice from Foggy and Michael. There's certainly no harm in understanding all of your options and there are various options likely to be available to you. If it's something you are keen to consider I'd suggest that the sooner the better because if you are able to settle your IVA with an offer of 'full and final' then the sooner you will be able to stop making contributions. Creditors are often keen to accept funds up-front, even it it means the might receive less in the long run. As I've said many many times, whether it's suitable for you will entirely depend on your individual circumstances.
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Thanks for your help. Our cases are in the process of being transferred to creditfix and our review is due so perhaps it's worth giving them a call to go over our options. Are we able to just use a secure loan to release equity in lieu of the extra year or might it be an option to be able to release funds to conclude the IVA even earlier with a full and final settlement. Didn't know this could even be done. I suppose we would have to wait for a valuation at month 54 to see what equity is available.
You can release equity prior to month 54 and offer it as a full and final settlement. This is quite common so it might be worth having a word with Shaun and see if they can help. If not you have at least tried and the evidence might be helpful when the full revaluation is done later on.
Absolutely. There's no need to wait until month 54. You can make an offer to your creditors at any time and we've handled similar situations for many people in order to release them from their IVA early.
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