Hi James - the iva seems to be allowing you to become debt free and keep your house, all with the benefit of legal protection. No other option would have done that. My guess is that they wanted to flip you to bankruptcy, charge their own whacking great fee and the enormous equity in your property foiled their plan. Sounds like sour grapes more than sound debt advice from the cold caller.
There are a lot of firms out there who do this James.
If your IVA is running ok then stick with it - you'll be debt free before you know it. All the interests and charges will be frozen.
If you have problems then your IP is always the best person to speak to in the first instance.
DMP may well take you a while to pay off and there is no guarantee that interest and charges will be frozen.
Stick with what you know - you'll be fine in the end.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I mean the company - the vast majority of us have never spoken to our IP directly.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
As Jan said, your own firm are the best ones to advise you if you are having problems. If you aren't having problems, just forget everything they said. They're no more trustworthy than the people who tell you you've won the Nigerian lottery!
Please have I missed something here, you are paying around £500 per month I guess for 60 months including IP fees around 30K, 36K if you go 72 months with 40K of unsecured debts however 75K equity in property, what does your remortgage clause say at the end of year 4, have you estimated how much you may be paying back?
Hi Daniel, no-one would ever pay more than their debt plus fees (and occasionally a small amount of interest). So James would only have to release a small amount of equity and as that's unlikely, as Mel said, an extra year of payments. The IP wouldn't arbitrarily take an excessive amount of equity.
Thanks for the comments, I understand the cold approach - thanks for this. But, excuse my ignorance, I am confused about my equity release. The resale value of my home is 275k, however, the rebuild value as documented within the IVA is 166k, which doesn't give me any equity. I am currently paying 60 mths @ £500, am I likely to have to go into a 6th year????
There is a very good chance that you will have to as I believe they will go by the resale value, not the rebuild value.
The vast majority of us now have to go an extra year if we have our house.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Never heard of a rebuild value of an assett in an IVA only in insurance premiums, in your IVA does it state the value of your home is £275k or £166K this is very important, and also is the equity shared or just in your name only,
2 yrs into an IVA, with no real hiccups. 60mths @£500 per month on an original 40k debt.
Initially, with DFH on a DMP, after 3 mths changed to an IVA.
Recent cold call from a different finance company, stating because of my equity, the IVA wasn't the best option.
I have no knowledge of the Yr 4 equity release procedure.
My IVA states the online value of my home is £166k. However, the actual resale value is £275k???
Really, really confused.
I understand the benefits of an IVA. But, has mine been hashed together. The cold call and all your experienced responses have left me very anxious about my position.
