www.iva.co.uk

.hi its lloyd again iwas worried about equity release.still cant grasp this.here is what it says can u explain.the debtors property is to be proffesionally valued within 6 months of acceptance of this proposal[it wasnt],75%of debtors equitable interest or £10000 whichever is the greater ,is to be realised and paid to the supervisor before the completion of this arrangement.if necessary the arrangement can be extended to allow an equivalent sum to be paid by way of ongoing contributions for a period of up to 12 months.to protect creditors interests in the property the supervisor is to register a caution at hm land registry,if this is not possible the debtor is to sign land registryform rx1 and return to the supervisor for lodgement at hm land registry to effect a restriction on the debtors property.monthly contributions of £350 to be paid into the arrangements by the debtors for a period of 5 years.total contributions are expected to be £21000.please try to help i dont want to remortgage again as i only have 6 years 6 months left on mortgage .we are 33 months into iva.the debt was for £68000.house is worth about £85000,mortgage outstanding £41000 on repayment basis.ypors lloyd and susan .[we pay £175 each into joint iva]

Hi there - I assume that this is a modification which was stipulated by creditors at the time of your creditors meeting.

What it means is that your Supervisor ought to have conducted a valuation of your property within 6 months from the date of the creditors meeting in order to establish whether there was any equity. If so, your share of the equity would then be calculated and 75% of that figure would have to be paid into the IVA before its completion subject to the £10k level also quoted.

Based on the current figures you have quoted - your share of the equity is £22k and therefore 75% of this is £16,500 which would need to be raised and paid over to your creditors before the IVA can be finalised.

It rather sounds to me as if this was never properly explained to you at the time you entered into your IVA - and I feel that you now ought to go back to your IP to see if they can explain exactly what you will be required to do, but I hope this helps in the meantime.

Lloyd, I've removed your surname from your previous post so you can't be identified.

If you can't raise that money in the final year then it appears that your arrangement will continue for an additional 12 months only

hi me again we r now 45 months into iva .only 15 to go .no word of having 2 release equity .and still no sign of house getting valued

You really need to discuss your worries directly with your IP Lloyd - as they have detailed knowledge of your case and in particular the requirement to raise equity. Which firm are you with?

sorry so long 2 reply .was with debt matters now taken over by pay plan .ive been totally misled about ivas from start .been missold an iva

You should have been fully informed of all the options before taking out the IVA. If you didn't understand anything which was in your proposal or any modifications at the meeting, then you should have queried it.

You will always owe the full amount to the creditors and if you can manage to remortgage or carry on for an extra 12 months then so be it.

It is very unlikely that you have been missold an IVA. However, if you wish to complain then your first port of call should be via Payplan and their internal complaints structure.

try ringing your case officer or email her,i found them very helpful at payplan,i would get your equity release clause clarified now rather than waiting near the 5 years is up.

If you're not sure who the case officer is (and mine has just changed), you can register with Justabank and see exactly how your IVA is doing.

lloyd wrote:

sorry so long 2 reply .was with debt matters now taken over by pay plan .ive been totally misled about ivas from start .been missold an iva

To say you have been mis-sold an IVA isnt strictly true,because you will find that everything thats happened during its course was detailed in your paperwork,the problem is that many(myself included) are just so overjoyed at finding a way out of the hole we find ourselves in that we dont always read the paperwork properly and also we dont shop around for a decent IP firm to work on our behalf.

As for being misled,well that I can agree with as many people do seem to get into IVA's without really having had it all explained properly.

Paul