Had a call from Freeman Jones today regarding my IVA review and 4th year remortgage clause, I have no equity in property, proved this through two recent valuations. So my contact called to say because the equity which was £14,800 back in June 2005 could not be released things were looking really bad - her words not mine. I have never ever defaulted been late and always complied with every review, she also advised that £3000 more debt had come in over the last 4 year and she was struggling to find the solution and would need a good half day with IP to work out what we were going to have to do, I feel in shock I asked if she thought my IVA would fail and she said it did not look very good. I said I would be prepared to extend up to 5 years and beyond (forever if I had to) but she didnt think that was possible. She then went and put me on hold for about 10 minutes but felt like 5 years and came back to say that she is going for a variation to propose the extention of up to 12 months that the equity release problem was not my fault and also the lack of funds because my ex-husband will not pay CSA contributions. I have not asked to reduce my payments but wil carry on cutting my cost to the bare minimum. I see the problem being my monthly contribution it is only £195 and the equity made up 65% of the said divided 24p and because the equity is not there the divided payment was only looking like 4p instead of 24p. I feel totally devasted and confused how was I to know the equity would disappear and I would be left with nothing to fulfill the estimated dividends payments. If you also add up 12 extra payments by £195 it does not even come close to the estimated equity required. I dont know what to do and feel totally heartbroken x Karen
Last edited by kabby3 on Thu Jun 11, 2009 3:22 pm, edited 1 time in total.
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
Some variations are being accepted as very low levels and given that you have not defaulted on any agreement should be justification for accepting your variation.
4p is better than nothing especially since the funds are already there and if creditors reject will only either fund the bankruptcy or be lost in the subsequent costs. Hopefully creditors accept the variation either with or without the 12 month extension.
You have no say over equity & the fact there is none is not your fault! I am sure an expert will put your mind at rest but I surely the worst cast scenario would be the extra 12 months? the person you are dealing with does not sounds a bit glass half empty to me!!
chin up hun. we are at sort of same positon as you . our equity is £38,000 but we cant release it as nothing available for us. i have been on phone to our company synergi , from what she was saying it will go to year 6 but they dont need to call creditors meeting as they have the discretion ! we pay 539 a month so like you on a yr 6 doesnt come close to the amount of equity they wanted which for us was 23,300 . i have just re read my proposal and it did state they cant petition us for bankruptcy if we tried but are unable to release equity. i am sure there will be a solution for you. it is like being at the start again , a bit scary . too close to the end now for it to go pear shaped . fingers crossed for you hun.
sue
Do try and keep your chin up Karen - you have a good record of paying - if you can't release through no fault of your own then I would have thought that would be recognized. Hopefully Melanie will be on later and give her views. In the meantime - keep your chin up!
God you poor thing! This is awful for you. I just don't understand this 4th year equity clause thing - which is in mine too. Im dreading the day it arrives for me, and just ty not to think about it too much at mo!
for us , we were not the sharpest pencils in the tin when going for an iva . we had that much debt we were drowning . they could have asked for my legs and i would have signed them away .it was just so wonderful for no pohone calls and letters. like kabby we are 47 payments down 13 to go . im on tenterhooks all the time at the moment in fear of something going wrong .
I wouldn't worry - we are required to release £28k as equity, or continue on for a further twelve months, which does not go anywhere near that amount.
It will just mean a creditors meeting, and I'm sure they will agree to an extra 12 months. Unless the funds are there to cover bankruptcy in your proposal, it will cost the creditors far too much to do it themselves.
Your IP will fight your corner.
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
I doubt we will get a remortgage (age and amount left to go on mortgage at the time), so an extra 12 months is fine with me.
It's never bothered me to be honest David.
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
