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Posted: Mon Nov 22, 2010 1:26 pm
by darth-skint
If an IVA is extended due to unforseen circumstances ie unemployment), can it be extended further for the usual reasons (equity, assets) taking it to "7" years? [:0]
Posted: Mon Nov 22, 2010 1:29 pm
by liamjames
Hi Darth,
Yes, most definitely.
Posted: Mon Nov 22, 2010 1:30 pm
by darth-skint
crikey. That's not very nice.
Posted: Mon Nov 22, 2010 1:45 pm
by liamjames
It will only be extended if that's what you want, or if you are asking your creditors to amend the terms and an extension is the only way they will allow that.
It's very rare that an IVA is extended this long, but it's much better than your IP failing your IVA at a late stage just because you were temporarily off work on long-term sick leave!
Posted: Mon Nov 22, 2010 10:00 pm
by MelanieGiles
I used to have a 17 year IVA in my portfolio - inherited I have to say as I would never have proposed it myself - but there are no set timescales - we may even see the general term extending in future past five years.
Posted: Mon Nov 22, 2010 10:57 pm
by leaKybrain
wow 17 years, mind you i remember seeing once on tv that if you only paid the minimum each month on a £1000 credit card it would still take a lifetime to pay off. 17yrs still better than that
Posted: Mon Nov 22, 2010 11:12 pm
by Broke of London
Definitely know I couldn't live like this for 17 years! Would have been br for me. Seems like a life sentence.
Posted: Tue Nov 23, 2010 6:30 am
by kallis3
I believe that Mel posted recently that that particular IVA ended up failing after a few years.
Posted: Tue Nov 23, 2010 4:55 pm
by darth-skint
17 years??
It's a strange strange world.
Posted: Tue Nov 23, 2010 5:29 pm
by liamjames
When the Insolvency Service released figures last year I noticed that 2 IVAs accepted in 1988 were still ongoing after 21 years.
Bizarre, but I'm sure they had their reasons!
Posted: Tue Nov 23, 2010 7:24 pm
by kallis3
It's all down to individuals and their circumstances.
Posted: Tue Nov 23, 2010 10:55 pm
by MelanieGiles
And why not - if it suits both debtor and creditors who is to say that this is strane at all. I am sure a total solutions company would not balk at putting a client into a DMP for 21 years - I see it regularly!
Posted: Wed Nov 24, 2010 10:13 am
by ChChing
An IVA would only usually go on for that length of time if there's a minimum div involved. It's unlikely that you'll see many VA's around these days which are over 6 or 7 years........
Posted: Wed Nov 24, 2010 5:20 pm
by kallis3
As previously stated, it's all down to individual circumstances. At least it means you won't be pestered by creditors over that period as can often happen with a DMP.
Posted: Wed Nov 24, 2010 8:06 pm
by Broke of London
I can see lots of ivas lasting six or seven years...it only takes payments in lieu of equity and a couple of payment breaks to rack up the years.