www.iva.co.uk

Hi All,
Just decided to have a read through my proposal and modifications and am now extremely worried!!!

I am currently 3.5 years into an interlocking IVA with my wife over a 6 year period (NR are one of the creditors).
I just decided to have a read of the documentation again as I was probably a bit naive when we signed them and were just glad to get something sorted.

One of the modifications was from NR which states that if 58p in the £ is not paid by the end of the period, then bankruptcy proceedings are to be initiated. This includes equity release of £19.5k

If there is no remortgage then the period can be extended to 7 years in lieu of equity.

My concern is that it will probably be impossible to remortgage and introduce this amount into the IVA fund, but it will also be impossible for 12 months payments to be made which would total £19.5k.

So, have I been paying into my IVA for the last 3 years , with no hope of ever being able to reach this figure?

I wanted to pay back as much as I could, and with 2 children of school age, need to protect my home.

Think I'm going to cry now ;(

Anyone out there with experience of minimum dividends?

Thanks for reading

Paul

Hi PaulyB.

Please do not panic - Im sure your IP will not of lead you into a agreeement that was going to fail at the end.
Its is true that with the current situation in lending & having your credit rating shot to pieces because of the IVA, that remortgaging will be extremely difficuilt. We are finding posters having thier IVAs extended due to not being able to release equity more & more common.
You have been in your IVA for over 3 years & in that time alot has changed in the lending industry. It may of been thought 3 years ago you would of been able to remortgage when it came to it.
Im postive a quick chat with your IP will help put your mind at rest as it is not in their interest to fail your IVA now or at the end.

Please dont panic & hang on for a expert to comment too.
Which company are you with? We may have a representive on the forum whom can help.

I read it as if a remortgage isn't possible then a further 12 months payment in lieu of equity will be realised. Try not to worry and do ring your IP for their clarification and they will explain it all for you x

Thanks Lyns and Leslie

Mel is my IP. It's just the line about if we don't reach 58p in the £ which scares me.

I'm embarrassed to admit, this is probably the first time I have really read through the paperwork as at the time, it was more like just being relieved to find a solution to the debt problems We had.

Mel is brilliant at explaining things, either give her or one of her staff a ring and I'm sure they'll reassure you, they're always accomodating. Let us know won't you x

Im sure your going to be fine, Mel & her team are brilliant & Im positive you will be well looked after by them.

Give them a ring as Lesley says & let us know

I've e-mail Mel (calling is a bit of an issue as I'm at work) and will let you all know how I get on.

Thanks for listening

P

You're welcome PaulyB and I'm sure it won't be long before a reply is in your inbox. All the best. x

Mel has recommended a full review to see if we can propose a variation to reduce the dividend so fingers crossed!!!!

Fingers crossed here for the review x

I feel sure that things will work out fine. You are with one of the best IP's in the industry so please try not to worry x

Hi
I am sure that NR will not bankrupt you, they would get little back in doing that and also the whole point of entering into an IVA is to sage guard your house.
Let us know how you get on
Regards

Hi. As you've probably been told, the IVA world is a lot different now to what it was a few years ago. The creditors realise this, which is why new proposals have different wording.

Many older proposals are being varied these days by enlightened IP's ( of which Mel is one), to bring them into line with the current economic climate.

When these older proposals were prepared, the specific sums were embedded to actually protect the debtor. The property market was racing ahead and IP's sought to attempt to limit the liability to the debtor. Unfortunately the bubble burst .. and here we are.

All that said the important line is ... you are in excellent hands with Mel and her team and I am sure it will all be sorted.

Thanks for all your support guys - it's much appreciated

No news yet - still keeping my fingers crossed!!