Hi we are due to finish our IVA in May this year. The agreed amount to pay creditors back was £33,000 and we have paid back £40k to date with Ppi payments added. Debt Lifeboat are now asking us to find another £15,500 via remortgage or secured loan to finish the debt off. I have spoken to a financial advisor who says we will not get the 85% on the mortgage or loan! He is now e-mailing them to see what they will accept! My question is, if we cannot raise the funds will they still make us do another year even though we will have added an additional 10k at the end if the agreed term? Or will they speaks to the creditors to see if we can complete in May as agreed? I am very confused!
If you cannot release the equity, as is almost always the case at the moment, another 12 months will be added in lieu, as per the agreement. Extra payments have no effect on the terms but merely increase the dividend to creditors.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
A one year extension may be cheaper in the long run than raising the equity so it may work in your favour. However if you really want to try and end the IVA you could contact Shaun Vickery from Select who posts here as they have access to specialist lenders and could possibly get the funds for you.
