Dear Experts,
I am now in year 7 of my IVA as an extension of 24 Months was added to my 5 years , as I couldn't maintain the arranged payments , this was all agreed by the creditors.
On checking my letters from Payplan I note the following points and would like clarification if possible please ?
1.Equity Value ;Is this based on the original valuation report given in 2008 at the beginning of the IVA?
2.Payplan are requesting a further valuation in year 7 in relation to the equity in the property ?
Is this correct , as this was never made clear to me , because as property values have recently shot up,75 % of the current value could wipe me out !!
3.Written into my agreement was as follows' "Should I be unable to realise my interest as established , the supervisor may call a meeting of creditors to consider varying the amount or extending the period ? Question ;As I have already extended by 24 months and cannot obtain any further Credit , what options do they have please ?
4.AS my property is jointly owned I realise they can only go for 75% of my Equity , but my partner has just recently been made redundant and used the money for Home improvements which has put value on the property, surely I cannot be penalised for this ?
In my contract from Payplan they contradict themselves as they say the Arrangement should not run for more than 72 months , but then later they amend to 84 months, is this acceptable?
Many questions I am seeking answers to please , Thanks Stanley
For the purposes of the IVA what your partner chose to do is likely to be irrelevant - if it adds equity to the property this will impact on your side.
If there is equity you potentially face another 12 months payments.
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.
I will try and answer what I can but only your own IP can give definitive answers.
If the IVA was extended due to a reduction in payments or arrears then the extension of time should also have been factored in at the time of the variation. There should be no problem on that front.
The equity is based on the value and mortgage balance now but regardless of how much equity you have it is almost impossible to get a remortgage. They will still need to look at the equity but a further twelve month extension seems the most likely outcome if there is equity.
Any home improvements carried out by your partner would need explained and a proper valuation could show this. However this may be expensive and unnecessary if you would still have equity anyway.
It does seems a very long time to be in an IVA and a two year extension for failing to maintain payments seems severe but that is a separate issue altogether. My guess is you get a twelve month extension and that will be that. A remortgage is highly unlikely to be an option and even a secured loan may not be available based on one salary.
I cannot improve on the advice Michael has given. Look towards a further 12 month extension, the figures quoted in the paperwork, would have been amended at the time of the variation regarding the arrears and there will also be provision in there for an extension in lieu of equity.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
I will try and answer what I can but only your own IP can give definitive answers.
If the IVA was extended due to a reduction in payments or arrears then the extension of time should also have been factored in at the time of the variation. There should be no problem on that front.
The equity is based on the value and mortgage balance now but regardless of how much equity you have it is almost impossible to get a remortgage. They will still need to look at the equity but a further twelve month extension seems the most likely outcome if there is equity.
Any home improvements carried out by your partner would need explained and a proper valuation could show this. However this may be expensive and unnecessary if you would still have equity anyway.
It does seems a very long time to be in an IVA and a two year extension for failing to maintain payments seems severe but that is a separate issue altogether. My guess is you get a twelve month extension and that will be that. A remortgage is highly unlikely to be an option and even a secured loan may not be available based on one salary.
