I am in the final year if my IVA the five years being up in Oct 2016.
I have been referred to a company who offered an unsecured loan to settle the IVA early. This would have meant a loan for the payments to Oct then another 12 months payments and they said the interest would total another 3 months payments. I am not happy with this so went back to the company handling my IVA. They said to go back to the lending company for a secured loan. I was told this was not posdibke and I am now waiting to hear what my next step is. I am struggling with payments as the amount was calculated on my salary with regular overtime which is now not the case and hasnt been for some time. I really want to see the light at the end of the tunnel but this seems unatainable!
You need to speak to your IP about this. The loan would have been secured but if it's not on your original paperwork then you don't have to do it.
If you have equity in your house then you may have to continue on for a further year in lieu of any equity but don't let them bully you into taking a loan out!
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
There is no compulsion for you to take out this loan.
First -- do you have equity in your home ? Check your paperwork, as often, if this is less than £5k no extension will apply.
Second --- overtime should not have been used to calculate your payment amount in the first place and the creditors, by this method, have been paid more than they are rightfully due. I would take this up with your IP and ask that payments be reduced immediately. Again, check your paperwork ... the usual situation is for 50% of overtime to be paid over.
Which company are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
if you do own a home and the equitable is over £5k and you cannot get a secured loan (or it is not possible) then the 12 month extension will likely apply.
This should be based on your contributions but if your income has dropped the contributions should be reviewed and reduced in line with this.
