unaware of the remortgage business at the 4th year

[Di.R]

I have been in my IVA for just over 1 year now. But due to the cost of living rising more than my wages, I am finding it a struggle to live from month to month.
I do not lead an extravagant life, I only go out a couple of times a year, and my holiday is usually funded by my parents.
I have recently considered declaring bankruptcy over the IVA, but really do not want to lose my house. I am single. So no spouse or partner to rely on. Both my parents are retired, and I do not want to shift my financial burden onto them.
I think I was a touch naive when I took out the IVA. And allowed myself a smaller living allowance on the expenditure assessment than I actually need.
Can I remedy this?
Also, after looking on this site, I was unaware of the remortgage business at the 4th year of IVA. This was never mentioned to me whilst arranging the IVA. And as far as I can see, is not mentioned in any of the paperwork I signed. What can you suggest re this issue?

[pbeck]

These days remortgage clauses are almost universal in IVAs for property owners so you should check that it isn't buried away somewhere either in the proposal or the creditors modifications at the meeting. If it really isn't anywhere, then you're in the clear.

Even so, if the remortgage clause is a standard one you will only be obliged to remortgage if during the 4th year of the IVA the existing mortgage is less than 85% of the value of the house, otherwise it will be deemed that you have insufficient equity in the property.

If you think your living allowance is insufficient, you should contact your Supervisor to explain why. If he agrees with you, he can convene a creditors' meeting to approve a reduction in payments, but they'll only accept this if they feel that your argument is convincing.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[pbeck]

Sorry I meant to say more than 85%.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[MelanieGiles]

Philip is correct in that it would be unlikely to not have any form of equity release clause in your IVA these days, but if not then the asset will be excluded and you could use it to raise money to offer an early settlement of your IVA if the equity is sufficent.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[pbeck]

Sorry I'm having a brain failure here, please ignore my last post, my first one was correct, I really did mean to say less than 85% !

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[goulda]

Hi Di R

With my IVA (Debtmatters) it clearly states in our agreement that my property will be excluded.
Does it state this anywhere in your IVA.

A. G. Gould

[Di.R]

I read through all the paperwork regarding my IVA proposal, and the outcome of the creditors meeting.
In my proposal it states that there is no equity in my home, so it should be excluded.
In the creditors meeting, the only thing I can find that relates to mortgages is from my current mortgage lender (who I also had an unsecured loan with) that says if I do remortgage within the life of my IVA, then any decrease in mortgage payments should be paid back into the IVA.
I can find nothing that says I have to remortgage in the 4th year.