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Posted: Wed Oct 19, 2011 6:54 pm
by vaughanie
can someone explain to me what happens if you have no equity in you house in five years time
many thanks
Posted: Wed Oct 19, 2011 6:56 pm
by kazzafunk
Hi - depends on the wording in your IVA as all can be different. You may be lucky to have it written down that if there is no equity then the IVA will cease after 5 years.
Posted: Wed Oct 19, 2011 6:58 pm
by vaughanie
thanks for quick reply, I have read it again and again but makes no sense at all!
Posted: Wed Oct 19, 2011 7:07 pm
by kazzafunk
Best thing to do then is to ask your IP to explain. I know there's lots of blurb that can go in about LTV of 85% of the value etc. Is this what yours says?
Posted: Wed Oct 19, 2011 7:21 pm
by Foggy
If you have a protocol compliant proposal ( started in the last year or so ) there should be a clause stating if no equity or less than £5000 equity the IVA will conclude at the end as expected. If there is more than £5000 in equity, you must attempt to release this into the IVA. If unable to do so you will have to make a further 12 months payments instead.
This can vary from proposal to proposal and is a much simplified synopsis so it's best to have a word with your IP.
Posted: Wed Oct 19, 2011 8:05 pm
by luluj
My understanding is the most recent IVA's will see an additional 12 months payments if no equity can be released.....older IVA's may have the clause that says the IVA will conclude - best option is to speak to your IP and gain the advice pertinent to your own set of circumstances !
Posted: Wed Oct 19, 2011 8:08 pm
by vaughanie
many thanks shall email them
Posted: Thu Oct 20, 2011 8:31 am
by kallis3
Let us know what they say vaughanie.
Posted: Thu Oct 20, 2011 12:39 pm
by vaughanie
just checked the emails no reply as yet
Posted: Thu Oct 20, 2011 1:33 pm
by Shining
Hopefully won't be long x
Posted: Thu Oct 20, 2011 9:21 pm
by vaughanie
just looked at emails got a reply if no equity will pay another 12 months in lieu
Posted: Thu Oct 20, 2011 9:32 pm
by Shining
so if you have no equity you have to pay another 12 months in lieu of the equity you don't have??
Posted: Thu Oct 20, 2011 9:33 pm
by vaughanie
apparently so !
Posted: Thu Oct 20, 2011 9:37 pm
by Shining
I'm sure they're right, I was just a little surprised but the world of Insolvency is way above me, I'm just someone in an IVA. All the best x
Posted: Thu Oct 20, 2011 10:04 pm
by vaughanie
thanks