If you can raise third party funds this would clearly be cheaper than borrowing from a secured loan company. You should have a look through the paperwork and discuss this with your IP as there may be a minimum dividend requirement or something else that needs to be taken into account. However if your IVA is a standard one with standard modifications, then an extension may be the cheapest option.
If you do propose a full and final settlement thgis would likely require a meeting of creditors but this should not be too much of a problem. I hope it works out whateevr you decide to do.
You can only do what is best for you - I hope it works out.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
If you Only have 6 months left odds are your agreement won't say you need to take a secured loan, sure it might say you must attempt to re-mortgage, most in an IVA can't do that, so you have to extend IVA by a further 12 months, then that's it all done !! Debt finished and written off !!
If you're being told you should be taking a secured loan becaue you can't re-mortgage then check your agreement to see if it says this (see my earlier link above). Odds are it doesn't and they are trying to com you into thinking you have to.
12 months further payments or 25 years, I know which one I would fight for !! Remember its 12 months regardless of what equity you have (if above the trigger clause for releasing equity).
Just becaue they make something affordable doesn't mean you are required to commit to it, you could be debt free with a 12 month extension if that is what your agreement says, check it and then send template letter in my previous post link.
Do yourself the biggest favour ever, don't just accept what they are telling you or believe it is in your best interest, it is probably in theirs !
People here can help you if you advise value of property and amount left on mortgage to oay, to calculate equity in property and your normal month to repayments, Also reproduce the section from your IVA agreement about equity release and protocols.
Last edited by longslog101 on Thu Sep 24, 2015 12:31 am, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
you might want to tweak to ensure that any continued contributions come off the lump sum so that if they delay the variation meeting/process it won't penalise you.
well fingers crossed they accept my fathers offer of £6,200
they have all of the paperwork they asked for, as of 5 mins ago
so here's hoping for a debt free crimbo this year
once i get feedback, i'll post it here for future reference for others
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
Just out of interest what is your monthly repayment if you extended for a further 12 months ? Just curious what 12x those came to VS your lump sum offer ?
Cheers
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
Current payments are £220. However, we have large changes in our income and expenditure,due to a large secured loan finishing, and i am fairly confident that my salary (bonus related) will be a lot higher next year because of new business we have attracted. So they could put our payments up a fair bit. With our new baby girl, we just want out. I also need to either move house or remortgage for an extension to our current home, due to having a son and daughter in a 2 bed house. So lots to consider for us really
I forgot to update this post.
They accepted our offer just before Christmas!!
We were advised that our monthly payments were to stop straight away, and normal service can resume.
Our IP needs to do some housekeeping and get the letter issued, but we should be done and dusted within the next couple of months
Thanks for all of your help.
I will probably be in touch soon to seek advice for a mortgage, because I understand that it probably won't be as easy as normal.
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
