Please could someone offer advice. We are 3-payments away from the end of our 5-year IVA, original debt was 62k, we will have repaid £49,080 plus an additional 4k from PPI reclaims, leaving £8,920 difference. I had two phone calls from advisors before xmas confirming our last payment date and amount. but I've now recieved a letter stating that a company called Select have been appointed to manage our case with the view of potentially releasing money from our property.
What is the likelihood of this being the case? After receiving the news that the end was very near, to the possibility of having to release money from the house or worse case scenerio an extention, you can imagine our stress levels are at breaking point. Is it usual for 100% to be paid back or does this depend on the creditors?
It may be worth mentioning that as all our PPI reclaims have been settled, we did not agree to the variation in terms (depsite numerous threats), not sure if this has any significance.
Hi, most homeowners who are in an IVA have it written in their proposal what is to happen to the equity if any within a property. If there is equity this may say to be remortgaged 85% LTV however, we all know the remortgage is nigh on impossible so an extension of 12 monthly payments in lieu of equity is often agreed upon by creditors. Check your proposal it will be written in there how this is to be dealt with and upon what basis. It may also say if equity is less than 5k the IVA will conclude without a need to release any equity.
If unsure do check with your IP but the answer I feel will lie within your proposal and your IP or senior staff should have explained all this to you at the outset of the IVA.
Do you have equity?
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Select are reviewing the cases of a number of IPs and reporting back to them as to whether or not equity can be released. It is then up to the clients and IPs to decide the best way forward and some choose secured loans, some are extended and some files are closed after the fifth year.
This avoids clients applying for remortgages and getting refused which can damage their credit files long after the IVAs are completed. Speak with Select and look at what options are available to you which you can then sort out with your IP.
