Hi, I am in my 5th year of my IVA, but have received a letter from them stating "I own 50% of my property (the other 50% housing assoc)and it is unlikely that I could remorgage so I am to attempt to apply for a secured loan of up to £17000" if I cannot get a loan they can extend my IVA for another 12 months". IVA total was £96000 and I am paying £1142 a month not with standing 50% of any overtime etc. 50p in the pound was agreed with creditors, I have paid £59310 to date of which the IP pockets around 20%. My worry is that I entered into this to rid myself of debt and not accrew more? and to be able to live! If I manage to get a loan of this amount it will put me into debt again for a longer period of time and I would not be able to pay the IVA its monthly amount as well as a large loan. Can they legaly do this?
If you were able to release a sum of money, which is highly unlikely, then your IVA would end after 60 months and you would then just pay the loan.
The chances are that you will have to continue for a further 12 months in lieu of any equity.
You will always owe the full amount to your creditors plus fees and possibly statutory interest until the end of the IVA. The more you pay in, the greater the dividend paid back. You will never pay back more than you owed in total.
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
Due to the current climate it is very unlikely you will be able to remortgage. Your original paperwork should indicate what would happen if this was the case and if like many others it is an additional 12 months of payment so be it, but do check and discuss with your IP if in doubt to make sure.
The end is in sight and you will be debt free in 12 months time - you have paid back a similar amount per month to us and yes it is frustrating the thought of having to do another 12 months to finish it, but better that than potentially having the IVA fail !
Just think at the end of the 6th year, you will be debt free and your credit file will also be clear - no hanging around for a further year !
Be proud of what you have done so far and look forwrd to the future !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Hi - the answer should be in your proposal. If your house was included as an asset in the proposal then you should have an equity release clause. It is standard for homeowners to release equity or extend the IVA for 12 months if equity release is not possible.
I'm surprised the equity clause was not explained to you at the outset. It is probably the single most important part of the proposal for homeowners.
The older IVAs didn't have this as standard as far as I am aware, but we are noticing on here that posters are having to either try and remortgage or a variation meeting is held so that creditors can decide whether or not a further twelve months is necessary.
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
The 12 months in lieu may not be in there, but the equity clause would or the IP would be acting outside of the parameters of the OPs IVA in asking for equity.
The question of surrendering equity seems to have taken the OP completely by surprise, suggesting it hasn't been mentioned previously. I mean, it's not something you forget.
Mine wasn't in my original proposal, it was a modification at the creditors meeting.
I've always been aware of it though.
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
But even if it was modified in, it should have been explained for the OP to agree to. Mind you, if I'd been told my case was borderline I would have agreed to anything in a panic...even selling a kidney!
It was explained to us when we got the call to say we were accepted but it could well be that some companies don't explain it properly.
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
If the IVA proposal talks about a "re-mortgage" then you should not be asked to look for a secured loan necessarily. There is one company that will provide secured loans to people in IVAs, but for no more than 70% loan to value and the interest rate is penal. Personally I would have thought that paying in for a further year would be a better option - but I share the other posters suprise that this is the first you have heard about this right at the end of the IVA.
Hi all our IVA is due to finish this September our IP has sugested we pay a futher Twenty Four months which would make it 7 years and as already sent this offer to the creditors as we have no equity.
Dave
ALL DONE!!! Received Final CC today Final payment 18 August 2013 CC 06 October 2015 Thanks to CLEAR DEPT you've been Great!!!
Hi - I would be tempted to speak to my IP/ case manager again. If there is no equity, there should not be any payments in lieu of equity. Oh...unless the proposal/chairman's report guarantees a lump sum or a minimum dividend (as opposed to an estimated dividend). Check your files before agreeing to the 24 months.
