I am in the final couple of months of the 5 years of my IVA, as part of term in Yr 4 i had to attempt to re mortgage my flat and use any equity in the property to pay off any remaining debt. If i was unable to re mortgage then a further 12 months of payments beyond the 60 months would be required. This is to take into account any equity the property may hold. i cannot re-mortgage and my flat has been valued in negative equity. My IVA company have attempt to do a revision to my IVA with the creditors to have the property removed from the agreement, the creditors have agreed to this, but want a further 12 months payments anyway. this to me seems unfair given there is no equity in the property. Could someone advise me on my options. As you can imagine being so close to the end, a further 12 months of payments seems unbearable
I would check the wording in your paperwork with regards to the remortgage. The chances are its there in black and white.
Lots of people are having to pay an extra 12 months.
Hi, yes i agree check the wording, i had this issue some weeks ago, im 3.5 years in and starting to think about month 54 which is when i have to have my home valued. It says quite clearly in my paperwork that if i have less than 5k equity i do not have to extend but the person handling my case would not have this, she kept saying i had to extend so i got the email address of my actualy IP who i never get to speak to and i word for word copied what it says into my paperwork, to him in an email. He was very quick to email back and confirm to me that if there is less than 5k equity in my property i do not have to extend. Just make sure you are totally on the ball because unfortunatly the people that we are trusting with our IVA are not always!
Do check your proposal again re the equity clause as it is unusual to make payments in lieu of equity when there is no equity to address.
Could the extension be for something else such as a minimum dividend to be met or did you pledge a specified sum of money? Sometimes proposals guarantee a sum of money from equity and this would need to be addressed irrespective of whether you have equity or not.
