I am paying back 100p in the pound. Do I still need to release equity ?

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Andy.66

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Post by Andy.66 » Sun Aug 17, 2014 4:23 pm
Hi All

My iva states that I pay back 100p in th epound to my creditors I am 12 months in to this which is tight but of course will carry on to pay back , my question is if my agreement is 100p per pound do I still need to release equality in my home in year 4 as I thought that you only paid back what you owed can any body assist please?
 
 

Foggy

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Post by Foggy » Sun Aug 17, 2014 4:30 pm
Hi, you might well still have to release some equity or take a 12 month extension as you will also have to cover the fees and possible statutory interest.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

seagulls

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Post by seagulls » Sun Aug 17, 2014 6:11 pm
It should say in your original contract. Best to phone your IP and check this out.
 
 

mole

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Post by mole » Sun Aug 17, 2014 7:17 pm
The dividend is normal express after fees have been included and for the initial terms (excluding any extension. So if you are paying 100p/£ then you will not need to release equity or extend at the end of the agreement.
 
 

Foggy

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Post by Foggy » Sun Aug 17, 2014 8:07 pm
I have to disagree with Mole -- the dividend is calculated after fees have been taken out, being calculated on the pence in the pound repaid on the original debt.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

luluj

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Post by luluj » Sun Aug 17, 2014 9:33 pm
We can only offer our views ... I would seek clarification via your IP direct to avoid any confusion on this matter.
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Shining

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Post by Shining » Mon Aug 18, 2014 3:46 am
Maybe one of our expert posters can offer an opinion but do agree your IP will hold the answer.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Adam Davies

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Post by Adam Davies » Mon Aug 18, 2014 9:20 am
Hi

If you repay 100p in the £ at or before the five year point then no reason for equity release or extension of IVA

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Andam Davies
 
 

Foggy

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Post by Foggy » Mon Aug 18, 2014 11:31 am
Again, I disagree. If you pay back 100 p in the pound there is still Nominees fees and Supervisors fees to be paid -- so to clear the IVA, lock, stock and barrel would require 115% plus around £1750 (ignoring any potential for statutory interest).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Adam Davies

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Post by Adam Davies » Mon Aug 18, 2014 11:39 am
Hi Foggy

Fees will be deducted before the dividend is declared, so a 100p declared dividend will be with all fees deducted by the IP

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Andam Davies
 
 

Michael Peoples

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Post by Michael Peoples » Tue Aug 19, 2014 11:49 am
If you can pay the 100p in the £ plus fees by releasing equity early this is soimething that may need to be done. If you cannot raise the equity the IVA will continue on until the contributions clear the creditors.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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