I have been enquiring with Creditfix to try and get an idea if I will have to release equity on my property in the next few months on my IVA-this is the reply I have received-does this mean I will have to release equity before June 2020 or not?! Help!!
(To put into context the dates-I had a 12 month extension added to my IVA due to Max Recovery adding further debt to my IVA -which I am disputing)-hence why the standard term is 6 not 5 years:
With regards to your below mail, please be advised that you entered into an Individual Voluntary Arrangement which was duly approved on the 17/06/2014.
You are expected to make a total contribution of £330 x 34 months, £355 x 26 months, followed by £330 x 12 months. Till date, you have successfully contributed £21,358.92 in your arrangement and you are expected to maintain same until 16th of June, 2020.
Also, you have no arrears on your account and your outstanding contributions is amounted to £3,051.08 to be paid within 10 months.
This response relates to the situation TODAY ---- the need for equity release will not be tested until month 54, or later in your case due to the Max Recovery extension. AFTER it is tested ( will there be more than £5k equity to trigger the clause?) THEN the need to attempt to release equity will appear. Have a read through your proposal -- does it list the house as an asset ? Does it mention equity release ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
