www.iva.co.uk

I have read lots of posts about equity release and wonder if anyone can offer any thoughts. My IVA is for 6 years; I have an equity release clause in the final year. When my IVA was set up, it was clear there would probably be no equity for release as I owe more than the house is worth. I am now worrying though, that my IVA will continue for a 7th year if I can't offer equity. I can't find anything in my agreement which says this, but know that many have a year extension to make up for lack of equity. However, it seems most IVAs are for 5 years, not 6, like mine. The thought of struggling into a 7th year would be dreadful. I am only in year 3 and feel like I have so long to go to make it to year 6, let alone deal with the prospect of another year.

Check your own paperwork and phone your iva firm to confirm the position but I would imagine that an extra year of contributions will be needed but only if there is equity in the property that you cannot release, if theres no equity then payments should stop after 6 years.

Paul

Most IVAs are for 5 years, then, if you cannot release equity, a further 12 monthly contributions are required, though creditors can ask for modifications to this in exceptional circumstances. Why do you think your IVA runs for 6 years? Is that the original term of the agreement? Check your paperwork, as suggested.

Hi Lou,

My IVA runs for 6 years too and I am in negative equity (maybe this is why we are paying 6yrs from the beginning?!)and as I understand it from my chairman's report the IVA will conclude at 6 years unless I have more than £5,000 equity and no more than 85% loan to value (LTV)on a remortgage. I am in year 4 now and neither of these things look likely at present. If it becomes likely then I will have to pay a further 12 months as it is nigh on impossible to get a remortgage.
Hope this helps but do read your chairman's report and speak to your IP.