i am very confused about the equity release clause

[Kate.72]

i am very confused about the equity release clause as i have come to the end of my I.V.A and am a home owner does it mean we have to keep paying ? my husband has left the marital home and finances are extremely tight !!!!

[seagulls]

If you have the standard IVA protocol agreement you will be expected to remortgage if you have over £5000 equity based on 85% LTV of your property.
If not, a sixth year of IVA payments is usually required . Best to have a look at your original paper work .

[Adam Davies]

Hi

Very unlikely that you will be able to remortgage so expect a 12 month extension of your IVA

How much do you think your house is worth and how much is outstanding on your mortgage ?

Regards

[Michael Peoples]

Even if there is equity creditors may allow closure of the IVA if the contributions are no longer affordable. Speak to your IP for some advice.

[Bob and Gill]

Can they force you to extend even if there is no equity??

[Michael Peoples]

It would depend on whether or not the other conditions of the IVA were met. For example, if not all overtime was paid over or there was a minimum dividend requirement, the IVA could be extended regardless of what the equity situation would be.