If remortgage is declined will our IVA be extended ?

[Joanne.15]

Hi,
My IVA is with DFD and my final payment (60th) is due on the 15th March. DFD passed my details to a company to see if they could help us with a remortgage which was declined due to our house value. My question is, if this has been declined when will the creditors meeting take place with regards to deciding if they will extend our agreement? When we took out the IVA our payments were £227 but due to us both getting better paid jobs this has increased to £810. Thanks for your time.
Joanne

[plasticdaft]

It will be written in your paperwork what happens if equity cannot be released. The most likely outcome is a 12 month extension in payments.

Paul

[Joanne.15]

Hi,
Thanks for the reply.
I know that if equity cannot be released there will be an extension, but my question is when would the creditors meeting to determine how long an extension take place??
I would have thought that the meeting would be before I make my last payment and when I phone DFD I get different information each time. I've been told that the meeting will be arranged after i've made my last payment and then a decision can take up to 28 days?
Sorry if i'm waffling but I just want to know what normally happens.
Thanks

[Struzzo39]

I think it should state in your paperwork already how long the extension should be for.

[Joanne.15]

Thanks Struzzo39 for your reply.
It's really the part of when should the creditors meeting take place that I need an answer on as I would have thought that DFD would not want a break in the payments.
As previously mentioned I would have thought the the terms of extension would have been sorted out before I make my final payment.
Thanks

[plasticdaft]

Normally there is no break in the payments as the remortgage or not is attempted with 6 months to go so allowing plenty of time one way or the other.

Paul

[Joanne.15]

Yes thats what it says in our agreement plasticdaft but DFD have since changed their policy on this (without advising their customers it seems).
I had all the information ready to send to DFD but when I spoke to them 6mths ago they advised that we didn't need to send anything as The Select Partnership can check all your mortagage details online.
Anyway our remortgage application was declined in Dec 2013 but now DFD are saying that our creditors meeting to decide how long our extension will be will NOT take place until we have made our final payment in March 2014 - surely this is not right?? I would like to know how long they are going to extend us for before next month when i'm going to be thinking that i'm debt free.
I hope this makes sense
Thanks for everyone's time.

[Christabelle_sparkle]

Hi
if you have equity in your property (more than 5k) and cannot remortgage your IVA is extended by 12 months in lieu of you not being able to release it. If you have no equity (less than 5k) then the IVA finishes at month 60.

[luluj]

The normal extension period is 12mths. ..However iva's are individual and only your IP can give you the definitive answer you are looking for.

[Judith Anderton]

Hi Joanne.15
Please drop me an email (address is in my profile), with your contact details and I will get in touch to discuss this further.
Look forward to speaking to you soon.
Regards,
Judith

[oliviaseb]

I have been advised my IVA is to be extended a further 2 years as I have equity in my property (more than 5k) I was under the impression it is a standard 12 months but this does not appear to be the case .
Although most think 12 months is acceptable.
We did not find this out until the month after our final payment.

[martinw]

Is this part of your IVA agreement (with modifications), or is this what the IP has offered at a variation meeting, or propose to propose at a creditors meeting ?

If it's not in your agreement, you may have the right to put a different offer forward (which may or may not be accepted by creditors)

Martin

[martinw]

Just seen your other thread Olivia, not best news, but I suppose that's the individual nature of the IVA

Martin

[oliviaseb]

Thanks Martin, I wish I had never taken this route! Worst decision ever.

[martinw]

It certainly sounds like a tough IVA, but much less to go than is already done and quicker than any other route would be now

Martin