hi, I'm in an iva, thought it was for 5 years, but they said it was for 6. maybe I was too overloaded with info to take this in, they said to check my contract, but to be honest I don't want to depress myself anymore than I am, then they extended it to 7 years. they were supposed to contact me in June with a view to getting a loan from my mortgage company if we have any equity, which I'm sure we do, they have not contacted me about this, but I would be reluctant to borrow again, especially as they said 85 per cent would go to my iva , so this would mean that it would take even longer to pay off our mortgage. we have about 17 months left on the iva but every time we think that there's light at the end of the tunnel ,they change the goal posts and add another year or18 months onto it, I no it's our own fault that we are in this position, and we have done the right thing by paying back our creditors, but now that we are in our mid fifties we would like to have some money of our own, and to enjoy life again with our family , instead of saying we can't afford to do things , our mortgage is with the previous northern rock now n. ram. kind regards
Hi.
Yes, an IVA is usually for 5 years at inception. Northern Rock, however, nearly always have the clout to get this modified to a 6 year basic term if they are a creditor.
After that, as long as you keep to the agreement, don't miss any payments and pay over any extra income as agreed they can only usually extend another 12 months in lieu of equity.
So -- in the majority of cases 7 years is it --- any other extension has to be explained by your IP.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It sounds as though your IVA is the same as mine - originally proposed for 5 years but extended to 6 following the creditors meeting at Northern Rock's request (this is shown in my IP's report) & then another year added on in lieu equity which cannot be released.
