Hi
I have just had the notice that my IVA has been extended by 12 months as I am unable to remortgage my property (it's shared ownership and my HA precludes remortgage for debt). I have nominally approx 35k interest in my property but I would be unable to realise that unless I sold.
Due to a change in circumstances my disposable income has risen and I am now being asked to pay an extra £250/month. I would obviously rather not do this. If I was to pay in the asked for amount over the next 12 months it would amount to approx 10.5K. So far I have paid off almost 40k of an original 46.5K debt, which even after fees and interest is over what the estimated dividend at the beginning of the plan was.
My question is what would be an reasonable F&F to offer at this stage? I could obtain about 5K - do you think it's worth offering this amount or will I be laughed at given I can 'afford' to pay another 10.5K and technically have equity in my property?
Hi Thea. I suspect £5k might be rejected as its a little on the low side I'm afraid compared to the £10.5k you say you will pay over 12 months. In addition it will take a few months to put a variation meeting/offer together by which time you would have continued to make some payments (albeit you could deduct these from any accepted offer)
PS It might be small comfort at the moment but remember that in Bankruptcy you would have likely lost your house so you have been bale to keep this through the IVA
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
That clause is also probably stopping you from having to take out a secured loan as well.
Under the circumstances I would say you have a lot of positives going forward.
Also, unless there are other pressures meaning that you need the completion certificate quickly, by the time a full and final might be resolved you could almost be out of the IVA anyway.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Tbh I just want out - it's been 5 years, but I appreciate that having the IVA has enabled me to keep the house (it's not really worth it's valuation it's only because London that it's doubled in 'value' since we moved in). I don't have a problem paying the extra 12m, I went into it assuming this would be the case as I always knew I wouldn't be able to remortgage. I just wondered if the 5K I could get my hands on would be reasonable but it's probably not worth asking
Thanks
