Hi All, I will going into my fourth year of IVA this December and my fixed rate mortage is ending next September, what happens if I can't release the amount stated in the equity clause of my IVA? Also I've been getting a number of letters and emails from companies informing me that even at the end of the 5 years the IVA company may still have a hold over my home and other assests and could even still bankcrupt me, is this true, as I was never told this when my IP set up the IVA. I know it could be scare tactics, but as I am finally seeing a light at the end of a long dark road (and years)I don't want to be hold over for another 5 years or so!
Thanks for anyone that can help in anyway to put my mind at rest.
If there is no equity your IP may be able to close down the IVA at the end of the five year term. If there is equity and it cannot be raised the IVA can be extended by twelve months or a third party can inject funds to allow closure. A lot depends on the original IVA and what modifications were proposed at the time. Speak to your IP for clarification.
Hi Mitzy
Thats an interesting question you posted. My advice would be (pretty much alonjg the same lines as Michaels):
what happens if I can't release the amount stated in the equity clause of my IVA?
Firstly check your IVA proposal and any creditor modifications and discuss with your IP as many re-mortgage clauses in an IVA state that even if you are unable to release funds from the remo it does not mean a failure of your IVA. Sometimes an arrangement can be extended by a year to compensate credsitors - but you will need to check this with your IP. Depending on the Terms and Conditions of your proposal your IP may need to contact your creditors to establishthe way foreward for successful completion of your IVA. In my experience they are generally sympathetic to people being unable to remortgage due to the ongoing economic crisis.
Also I've been getting a number of letters and emails from companies informing me that even at the end of the 5 years the IVA company may still have a hold over my home and other assests and could even still bankcrupt me, is this true, as I was never told this when my IP set up the IVA.
In this instance speak to your IP, however in my experience this is very rare.
I hope this helps and apologies if its abit technical!!
Hi
The letters and emails from companies that you are receiving are from bankruptcy assist companies that are trying to sare you into using their services.
In my experience I have never heard of an IVA not concluding after the agreed term, even if extended, and the creditors forcing bankruptcy.
It is little more than scaremongering
Regards
Thanks so much for your replies its put my mind at rest. I'll contact my IP and discuss some of the topics you have given me.
Can I say this site is excellent with help and advice, I was a total wreck when my ex left me witha very large sum of debt but you have all been so helpful. Makes you realise you're not alone. Thanks again
