I am in my final year and a valuation has confirmed 24k equity, but cannot remortgage. payplan are saying that my creditors may force me to sell my property in order to recoup the original dividend, as an alternative they are suggesting an extra 24 months payments taking me to 7 years. I have opted for this, but I am suprised that forcing to sell may still be an option.
Hi there - this is what I fear as I have so much equity in my home. Have your creditors been asked yet whether or not they would accept 12 months extra? Is it definite that they would want you to sell or is it just Payplan's take on it as they are saying that they MAY force you to sell it. What is the point of trying to protect your home if this is what happens?
That is very kind of you to say so Tobymoz, and regardless of whether you are a client of mine or not, you can still ask your questions on the forum and I will try to help.
Are you using a forced sale valuation for the basis of calculating the equity?
Tobymoz - It's Payplans take on it, telling me they may force me to sell or petition for bancruptcy. It's an extra 24 months they are asking my creditors for, which would take me to 7 years, but the meeting hasnt taken place yet, Payplan said the whole process of the creditors meeting etc can take 10-12 weeks
Melanie - the valuation was just a normal valuation as far as I am aware, it was arrnaged by Payplan and was the same guy who valued the property at the start of the IVA
Tobymoz - It's Payplans take on it, telling me they may force me to sell or petition for bancruptcy. It's an extra 24 months they are asking my creditors for, which would take me to 7 years, but the meeting hasnt taken place yet, Payplan said the whole process of the creditors meeting etc can take 10-12 weeks
Melanie - the valuation was just a normal valuation as far as I am aware, it was arrnaged by Payplan and was the same guy who valued the property at the start of the IVA
I would doubt it as I believe these only came into being in February 2008.
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'm not sure what that means and there is nothing in my documents that state this. The proposals say that '
not being able to realise my interest in the property may mean the supervisor may call a meeting of creditors to consider varying this sum or the duration of the arrangement.'
thats fair enough, but it doens mention anything about forcing me to seel my property or making me bancrupt
The proposal also states that '
failure to pay unsecured creditors the anticipated dividend as shown on the outcome statement will not be a default of the arrangement'
surely if they refuse to extend and push for bancruptcy they are classing this failure to realise the dividend as defaulting ??
This is a minefield and one i'm not looking forward to as i enter the first payment of my 4th year because this time next year i too will be looking to remortgage, however as i already had a 95% mortgage and doubt very much that the house has gone up that much in value, worrying times to be honest. Tobymoz i wish you well and hopefully you can get this sorted so that you are not worrying.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
Hi there - thank you so much for your kind thoughts - I also wish you well with yours and hope it gets sorted for you.
I just can't get my head around it all - everytime I look at the definition of an IVA it clearly states that they should cover you from losing your home but then I get all of the contradictions and it just gets beyond me.
I just don't know how I'm going to get through the next few years with this hanging over my head all the time and the not knowing how it's all going to end up. Regards tobymoz
I think that your IP should be going some way to trying to deal with your concerns, legal jargon at best is hard to understand. Please don't worry, try and get to speak with your IP and get it sorted, good luck and take care.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
This is again where reading proposals carefully comes into its own. You should know before you sign anything whats will happen if you cannot get at equity.
Payplan suggesting a 24 month extension is outrageous in my view as you have done everythings thats been asked,you just cannot get a mortgage in the current climate(hardly uour fault no one will lend to creditors with a less than perfect history!!)
People should not be on an ongoing IVA for 7 years when 5 years was what they were aiming at to start with.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I'm with PayPlan and have just started my 4th year when I am required to remortgage to release my share of the equity. My Chairman's Report states:
"Should the debtor be unable to realise his share of the equity in the property by way of a remortgage, 12 additional monthly contributions shall be made, providing that the supervisor has first written to creditors to ensure that there are no objections."
I have equity in the property, but from reading posts on this site, it seems unlikely that I will be able to remortgage. I will be contacting PayPlan shortly to ask what the situation will be if I can’t remortgage and the creditors do have objections. I can fully understand tobymoz's frustration as this is such an important issue to be so woolly.
I totally agree. It is something that should have been clearly agreed and stated in the IVA from the start not an option in year 4 for the creditors to agree or disagree. I would also be very unsettled! Hopefully it is just the wording of the iVA which is a bit 'wooly' and that in reality the creditors will agree to this as it seems they do in most cases. I wish you both all the luck in getting this sorted and please keep us posted as to what the outcome is.
I've been reading the different answers regarding releasing equity or re-mortgaging. I cannot re-mortgage in year five as I have a mortgage which was based on a higher income than I had due to my disabled daughter. The house has been adapted (by me, financially, and on a disabled facilities grant to knock through to the garage and put in a downstairs cloakroom). Will the creditors expect to have a charge over my property or expect me to sell? It's a worry as I'm only one year in and hope to do a full and final settlement as my mum passed away. I am on a six year IVA as I could not afford the payments over five years, but there was no change to the criteria. So what will happen in that instance. No one seems to be sure. It's beginning to really worry me. Am I just a bit thick???? Please don't be too honest on that count! lol
IVA started Sept 09. Glad to be on the way to being debt free
