www.iva.co.uk

Hi
We are in our IVA's 3rd year, next March is our 4th year remortgage clause? But I am angry!
March '07 loss of income start of IVA
May '07 lost job muddled through offering what we could afford.
March '08 variation and back on track.
Oct '08 guess what? made redundant! IP said that it was unlikley we would be granted another variation so, in panick we extended our mortgage to 25yrs full term at intrest only, extended a secured loan to 25yrs to lower the payments cancelled both life insurance policies and a health plan policy to raise enough money to continue our IVA payments and so avoiding another variation! OK no problem says our IP. We do not have any equity in our house. So, obviously we can't remortgage an intrest only no equity secured loan tied property to raise any money and selling the property won't raise any money. So, our IP says "we will pay into the IVA for a sixth year" I intend to refuse to pay after the original agreement of five years, but I have to say I am so depressed I feel I have no rights and feel cheated after trying to do the right thing by paying as much of our credit back as possible. I didn't know at the time that an IVA carries a bankruptcy file on your credit report, so we will be bankrupt up to 11 years! How fair is that?
Kind regards
Val

You seem to have done more than enough to try and repay creditors and they should let your IVA cease at the end of the original term.

If there is no equity in the property there should be no need for a sixth year extension unless there was a minimum dividend requirement. Discuss this with your IP and get clarification now. If you are adamant about not paying a sixth year you would need this resolved now rather than continuing to pay into the IVA for it to be failed after five years.

Your IP cannot simply extend the term of the IVA out of his/her own whim - but they may need to call a meeting of creditors to ascertain their wishes with regard to the equity.

It really does depend on what your proposal actually says, and Michael gives good advice about tackling the situation now rather than waiting until the event is upon you.