www.iva.co.uk

Hi

I have an IVA, started in Nov06. 5m paying back 39p in the £.
I have made 25 payments of £390 per month. I have A further 31 payments of £390 and 4 of £500. And a possible £5k equity release.

So to date I have paid £9750.

Remaining payments of 31 x £390 = 12,090 plus 4 @ £500. So im owing £14,090.
Plus £5 equity release. At present I only have 8% equity in my property, which is about £12k.

If my dad was able to give me money to pay it off early would be a reasonable amount ?

Please dont all reply "You have to ask your advisor" as thats obvious.

Surely DFD wont be able to take the £5k equity as I dont have enough. And in 2.5 years time my house will be worth even less. Do you think £10-£12k would be a good offer.

Thanks for reading.

Hi, and welcome to the forum.

I appreciate that your house may be worth less in another couple of years, but at the moment you have more than enough equity to pay your equity clause, and of course house prices may have started rising again by then.

One of the professional experts may be able to help you with a reasonable sum, but at the end of the day, it is down to your creditors as to what they are willing to accept.

If your dad can help with an offer that you can say is only available to you to pay off your creditors then your IP should put forward a variation to your creditors for their consideration. Ensure it is noted that this offer of money from your father is only available to end the IVA now and not for any other use.

Can I just ask a question.

If I agreed a £5k equity release from my property at the end of the term.
For example I have 10K left in my house as equity. Surely DFD wouldnt be able to take it as firstly no lender would lend me the money as my LTV would be nearly 100%.

Is there a % that DFD or any other IVA practice use before taking equity.
I can imagine a lot of practices dont get the equity release on these time of house prices.

I think the majority of IVA's going through still have the equity release clause.

I know my own IVA states that if I have below £5000 equity then the house will be taken out of the equation.

That'll never happen though as we still do have equity in it.

Hi
It is unlikely that you will be able to release any equity as you will quite possibly only be able to remortgage upto 80% LTV.
I think that your offer is worth putting forward with a good chance of acceptance
Regards

Speak to your IP at DFD as the offer (funded by your dad) looks good to me and dfd can put a variation for a F&F forward for you.

Good luck with your offer.

Thanks for your replies.