I started my IVA 2 years ago, and was in such trouble that I would of said yes to chopping off my left hand just to have my debt sorted out, so in my hast I've signed up to a 6 year IVA, it seems like every one else is on a five year plan? Is there any appeal process because as I said I would of agreed to anything, It's only now two years down the line I'm looking back at how silly I may of been.
You may have been given 6 years to achieve a dividend that your creditors would accept.
Presumably you will have been sent all the relevant information to read before signing?
It would be very costly to appeal and doubtful that it would change anything.
Do you have any assets to protect? i.e a house?
Do you think bankruptcy may now be a better option for you?
However, if you now went bankrupt your credit file would be shot for a futher 6 years.
your not on your own ash 6 year iva,s are quite common these days,depends on what creditors you have and your circumstances.people with equity clauses frequently have there iva,s extended to 6 years.if your managing with your iva comfortably stick with it,as if it fails you will be back to square one.
Six year vas have their place. It may be because of a particular creditor or to get you to a dividend your creditors would accept. Or it may be in lieu of trying to release equity or to protect an asset you didn't want to sell (motorbike, caravan, number plate etc). Northern Rock seem to favour six year ivas for people with their Together mortgages or 35year deals.
I have no assets, northen rock was a creditor though, I'm paying back a dividend of 45p to the pound. That seems like a very good rate compared to what it seems like some people pay back. bankruptcy was not an option because of my job. Three years, 8 months just seems so long,
A lot of IVAs will now end up being six year ones as nobody will be able to do equity release. Not ideal but you'll soon be halfway there stobatron.
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
They would extend to seven years in lieu of equity. But in all likelihood you will be able to remortgage by then. There are already signs that lending criteria is easing up.
What if I have no house to remortgage. If I completed 6 years living on a shoe string only to be TOLD it's being extended by a year. can anyone tell me more about how or why an iva would be extended by a year.
If you have no equity to release and you have a 6 year IVA your IVA should conclude successfully. However, if you have a minimum dividend to meet and you've had a payment reduction/break it could be extended to meet this.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
We have a 6 year IVA, and yes, it is a long road with some bumps along the way. If we make it we will be grateful and debt free at the end. It is not easy, and I do feel some days we should have chosen the Br route as a quicker alternative. However we are where we are and have to deal the hand we have.
We do not have the equity issue as we rent.
Try to keep looking forward as this helps to make you be positive about the journey we are all on.
I don't think that you have been silly at all in agreeing to offer an IVA over a six year term. When you borrowed the money in the first place it would have been with the intent on repaying it back, so the fact that your creditors are going to get a year's extra payments from you has to be a bonus.
There is no right for you to appeal - because you would be appealing against your own decision made two years ago, and it is unlikely that you would have got an IVA without that agreement. If you feel really hard done by, then perhaps bankrupcy represents a better option withe the benefit of highsight?
As Mel says, if you are feeling hard done by it might be worth considering BR. However, you need to bear in mind that the rules regarding Income Payment Agreements are changing. Rather than paying a percentage of any disposable income over £100, you would now need to pay all disposable income over £20.
An IPA will last for 36 months from the first payment, so by the time your IVA has failed and the IPA has been set up your IVA would most likely have failed anyway.
Finally, your credit rating would then be shot for a further 6 years from the date of the BR.
Stobatron -- the fly in your ointment was probably Northern Rock, who seem to push for 6 years at every opportunity. I know it is a pain, however, in black and white, what you end up paying over the 6 years is far less than the total debt would have been ( especially if you think, without the IVA interest would still have been accruing !! -- OOhhh horrible thought !).
As Melanie says, it is unlikely that the iVA would have been agreed at 5 years.
Still, on a positive note, you are a third of the way through ... that light is getting brighter.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
