I am just coming up to my forth anniversary and have made every payment on time in line with my schedule (£450 per month) I have also had a tax rebate of £5000 paid into the IVA which means that we have exceeded the original agreement but still leaves a balance against the total debts at the start of the IVA. I am now being asked to remortgage or get a loan for my proportion of the eqity in my property (£17000). I cant get a loan or mortgage and have been advised that I need to make proposals to repay this amount over two years. My IP has said that I should consider selling my house and if I am unable to comply with the terms of my IVA they may consider bankruptcy.
I should be very grateful if someone could tell me where I stand especially as I have complied with everything so far within the agreement. The fact I cant raise a loan or mortgage is outside of my control
I have no idea, but I am sure someone who is in the know will be along soon to answer you correctly.
I would also be interested in the answer as I thought an IVA was designed to protect your house also - its a scary thought if it doesn't!
Best of luck and how great you have got this far - I am sure it will be fine - I'm a bit of a novice myself, but what you have been told doesn't sound right to me - at least not the way I understand it.
Hi smiler,i agree with soashamed70.This doesnt seem right.Normally if you cant raise the funds through remortgage then they will extend the iva for a further year.Hopefully one of the experts will be able to help.
Regards blods
What does the IVA agreement actually say on this - surely this possibility was discussed with you by your IP prior to the agreement being entered into?
I think that your IP ought to call a meeting of creditors to consider this matter. I do not accept that the house should have to be sold, and the likely outcome is that you may be asked to pay another year's contributions in lieu of anyequity.
3)In the 4th year of the arrangement an open market valuation of the property must be provided to the supervisor together with a mortgage redemption figure. The debtor must obtain a minimum of two offers of re-mortgage which address the debtors share of the equity therein and provide which ever offer provides the greatest return to the creditors and 100% of the debtors share of such proceeds must be paid into the arrangement
4)Upon successful re-mortgage of the property at the discretion of the supervisor, voluntary contributions can be reduced or cease
5)Should the debtor be unable to realise the equity, the supervisor shall call a general meeting of the creditors to consider the debtors proposed alternatives.
The points above are the pertinent to the question however when I asked for some clarification as to what may happen the issue of house sale or bankruptcy was bought up. As a consequence I am not sure what I should propose or for how long. I thought this was going well and it would be a shame to fall at the last hurdle.
What should I offer?
How much for how long?
What happens if they don't accept what I offer?
Hi
You certainly won't have to sell your house, this for some is the main reason for going into an IVA over bankruptcy, and I also doubt very much that you will be declared bankrupt. The most sensible approach would be for you to extend your IVA for one year.
Are you actually speaking with your IP or a case worker ?
Regards
Your IP will need to call a meeting of creditors to explain why you have not been able to raise equity. They may seek an extension of your payments depending upon the circumstances, but you should only agree to this if there is equity which could be raised, but for reasons within the mortgage industry at present is unobtainable.
