I have an Iva that was due to end last month (5 years). I was asked earlier in the year to apply for an equity release on our property which we were not successful with. The Iva company have now told us that we have to continue paying for a further year. Is this right? If a family member was to lend me the money to pay this off in a lump sum is this permissible ?
Hi Al58- Yes this sounds right depepending on the terms of your IVA. Most will state the property to be revalued at year 5 and if certain level of equity appears to be available then that equity needs to be realised one way or another for your creditors. I recommend you check your IVA terms in this respect. There is always an option for your family member to offer a lump sum contribution to settle the IVA early. You may even find that creditors will agree less if it means they receive their dividend a year earlier than expected. God Luck.
