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First post everyone...just want your thoughts on what might happen - we are currently in a 5yr IVA no min dividend however we are expected to release £13k equity - as you will be aware we are unlikely to be able to do this. Our payments were agreed at £550 pm however we have been overpaying for the last 2yrs and will be until the end. What is likely to happen - extension (and by how long) or end on time?

you would be best to go through your paperwork with a fine tooth comb to get the right answer but i would guess that if no equity release is possible then a 12 month extension would be added to cover the equity release. This extension may be cut short if your over payments make up the £13k but you would have to speak to your ip to confirm this

Hi and welcome to the forum.

If you can't remortgage then the chances are that your IVA will continue on for an extra year in lieu of equity.

With the overpayments, are you likely to be able to repay everything back in full?

Thanks for the speedy responses we have looked through our standard conditions within the chairmans report - it refers to the duration of arrangement and notes that the Supervisor may extend beyond the agreed 60months if there are payments in lieu of equity "in which event the Arrangement shall be extended until such payments are received or for a period of 6 months, whichever shall be the sooner". It then mentions that any extension will continue for the period specified in the Extension Notice "or for the maximum allowable period for that extension (being 6 months for the first extension and 3 months for a second extension) commencing on the date immediately after that on which the Arrangement would otherwise have completed, whichever is sooner".

The only mention of extending to 72 months occurs in the modifications proposed at the meeting of Creditors, but this relates to an extension that can be granted, with the Creditors' approval, if we wish to reduce the monthly contributions into the arrangement, which does not apply and is to make up the shortfall in those monthly payments.
Would you say that this means the maximum extn would be 9 months ?

No idea on that one - my own modifications were for a twelve month extension.

Speak to your IP to clarify the position with regards to your own specific case.

Welcome..., I think your paperwork needs to be clarified by your IP. Normally modifications agreed at the creditors meeting supersede previous points in original paperwork.

The 9 months is for any other extensions needed. Does it mention equity release at all? I'm with payplan & was given standard conditions in addition to my chairmans report. Mine was extended to 72 months (thanks NR) with possible 12 month extension for any equity release. Then I suppose they could extend up to 9 months - I imagine if you had reduced payments they may use this.

The following is the only part relating to in lieu of equity

Supervisor may extend beyond the agreed 60months if there are payments in lieu of equity "in which event the Arrangement shall be extended until such payments are received or for a period of 6 months, whichever shall be the sooner".

It sounds as though it will only continue for 6 months reading that, but do clarify this with your IP to make sure.

Hi - it does sound as if you have a 6 month extension in lieu of equity but only your IP can tell you for certain. A quick word in the morning will clear everything up. x

I've never seen a 6 month extension for equity in either an IP's proposal or a creditor modification - but the only person that can give you true clarity on this is your own IP so give them a call tomorrow to set your mind at rest.