I am currently in year 4 of my IVA which was agreed to in June 2008. As I am coming close to the end of my IVA I have been requested to give in info about remortgaging which A) there is no equity and B) it is a joint mortgage. As my IP is saying I cannot remortgage I will need to extend by 12months. The question is I have already extended by 12months due to a pay cut in salary back in 2005. Can they extend my IVA for a further 12 months effectively making my IVA a total of 7 years?? Also I was under the impression it would only be extended if equity was available but I was unable to remortgage. Any advice would be great!
It is very common that in lieu or equity those in an IVA have to extend their term by 12 months, and for most this works out cheaper too.
If you missed any payments, the IP also has the right to extend the term to recover an money that is in arrears, so even if you were not working and had to take a break, they do normally add this on at the end f the term to make it up.
The above also coul be extended further if you hve a minimum dividend agreed that needs to be achieved, but I would check the paperwork.
I would speak to your IP to clarify the above, but these are both very common.
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
Hi Jerry. It all depends upon the wording of your proposal. More recent IVA's (most but not all) contain the provision that if you have equity of less than £5000 the property is excluded and no extension applies.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The agreement states...'Where the debtor is unable to obtain a remortgage the IVA should instead be extended by up to 12 months.'
As I had already extended by 12 months due to a pay cut and subsequently reducing my payments each month to make up for the shortfall I was unsure whether the IVA could be increased to 7 years?
Hi! Surely if there is no equity remortgaging would not be a possibility despite the current climate with the banks! I would speak to your IP again to ascertain what the extension is for as there is no equity! Good luck
Muggins, in older IVA's (fortunately most ending or ended by now) the question of equity figures were agreed at the outset and had to be found come hell or high water. Fortunately, these days, the situation has been largely addressed.
Enlightened IP's who still have the older IVA's ongoing are seeking a variation to bring them into line with current practice.
I suggest, Jerry, that you have a chat with your IP and see what his view is in the current, no equity, circumstances. If the proposal doesn't have a "no equity get out clause", seek a variation.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Surely the interpretation of that clause only kicks in if there is no equity in the property? I would have another chat with your IP to make sure that this is the undertanding they have as well - and take legal advice if you are not happy
The letter doesn't state yet I'm going to have the extension yet but does indicate they are looking at doing it. I will contact my IP and take it from there. My main question was extending the IVA for an extra year seeing as it's already been extended by 12 months due to the reduction in my salary. Ive still got 6 months of the original IVA and then a further 12 months due to the extension.
The extension of a further year to deal with your reduced income is one thing - the extension to deal with equity is another. Personally I don't think that you should need to extend for a further year if there is no equity - but the terms of your individaul arrangement will dictate what needs to be done, so best to clarify this with your IP so you know where you stand.
