What courses of action are open to me to appeal

[ianmillington]

If it's the best you can realistically afford then it has a fair chance, although as I don't know your proposal you will be best guided on the matter by your new Supervisor.

Ian

[Steve.t1]

Thanks agin.

I just realised I never did post the wording of the clause. So here it is:

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 2 offers of remortgage which address the debtor’s share of any equity therein and provide documentary evidence of each to the Supervisor. The debtor must accept the offer which provides the greatest return to creditors and 100% of the debtor’s share of such proceeds must immediately be paid into the arrangement. Monthly contributions may then cease in order to accommodate an increase in mortgage payments and the supervisor may take steps to conclude the arrangement having first written to creditors to ensure there are no objections to the IVA being completed early. Should the debtor be unable to realise his equity in the above manner, the Supervisor must convene a general meeting of creditors to consider the debtor’s proposed alternative.

[ianmillington]

Ok so it's not exactly how I perceived it. It's rather less draconian.

Basically it's get 2 offers of remortgage, choose the best one (for the creditors) and introduce the amount into the pot. Note if the property is jointly owned it's only your share that needs to be introduced. It also provides for what will happen if you can't get a remortgage, which my best guess would be an extension of the VA instead. I think it's pretty standard really.

So the questions to be asked are:

Value of House?
Is it jointly owned?
If so is it just you in the IVA?
Current mortgage (in £)?
Monthly contribution?

That will then give an idea as to how much you can actually introduce in the first place, which I think must be your starting point.

Ian

[Steve.t1]

Ian,

I've got no gripe with the wording of the clause ,just that it should have been done in the 4th year and not now near the end of the 5th. One could draw the conclusion that the IP deliberately ignored the clause in the 4th year instead of ensuring it was invoked to allow more money to be made from me in terms of continous contributions and rising house prices.

Yet the 4th year is what it stipulates...... Nothing about the 5th

So i want to release equity as per August 2006 when my house price was lower and before I had made all those extra payments

[ianmillington]

Take it from me Steve, it is more likely that the requirement to remortgage was overlooked by the person handling your case, than a deliberate action on his or her part. Whilst noting and agreeing with you that your former Supervisor should have taken this up at the time, the flip side is that strictly speaking there is a breach of the IVA.

I reckon you should have a chat with your new Supervisor about it. It may be that he/she will agree to remortgaging in the manner you have suggested.

Ian

[MelanieGiles]

If I were Payplan, I would agree to a valuation of the property at the end of the fourth year - agents will do them retrospectively, and then see whether you are able to remortgage now. I personally would not allow you to discount for payments made since, as you have to share some responisbility for the remortgage not taking place at the appropriate time.

Given the current climate in the mortgage world, you may find that you cannot find a lender in any case - so there will be nothing to raise as you will have complied with the terms.

A meeting them has to be held to determine a way forward, but this could be a blessing in disguise!

[Steve.t1]

Thanks Melanie, If a meeting has to be held because the equity cant be released, what options are open to the creditors and to me? Can they extend the iva or would i be free to end it after 5 years

[MelanieGiles]

I would certainly recommend closure at the 5 year point, but they could (and probably will) seek an extra year as a gesture of good faith on your part.

[scooby0]

Hi Melanie,

If the IVA is extended for a further year, and the financial market improves would the creditors then be able to force a release of equity?

regards

[MelanieGiles]

NO!

[scooby0]

well that answered that one then! short and sweet ...

lol