My original debt was approximately £38,000, and I will have paid £36,000 when my IVA is due to end, in 7 months time. My IP has now asked me to release another £20,000 from my property, which I will have a problem with, as I will be 64 next year, so increasing my mortgage is not an option. Can I be made to pay back more than the original debt?
You always owe the entire debt plus costs and possibly statutory interest as some firms charge this. However, you will struggle to get any remortgage so the likelihood is that your IVA will be extended by a year and creditors will have received a very high dividend.
Hi Ed - yes you can - depending on the terms you will almost owe the debt plus statutory interest plus costs. On the assumption you won't be able to remortgage you will probably find that the terms of your IVA stipulate that you will have to extend your IVA for another year in lieu of realisation of the equity. It's a large sum so it's a long shot but you could also look to challenge the equity figure they have arrived at.
