www.iva.co.uk

Hi

My IVA is period has reached 5 years. My IP is preparing for the creditors meeting. My share of the equity in our property is 96k. The balance of debt is approx 64k. My IP has suggested I try to remortgage via an non high st lender as my current lender and several other high St lenders have refused so far. They also say I may have to sell my house if I can't remortgage. I thought I would just pay for a further year but this may not be possible because the equity is greater than 5k. I don't want to sell my house. What options do I have? I feel I have been badly advised in the first instance by the IP as I now feel I might as well have gone for bankruptcy instead.

Thanks

John

Hi John -- the answer lies in what it says in your own equity clause in your proposal.

Generally id equity is under £5k it is ignored. Over £5k triggers the equity release by attempting to remortgage. If you cannot remortgage then you get the 12 month extension. Any release has to be within certain parameters too.

Check your proposal. Some companies are trying to bully clients into taking expensive secured loans, which works OK in some circumstances, but is NOT specified within the IVA.

Advising a client that they may need to sell their property is a drastic reaction and one which should only be provided if the terms of the IVA proposal require this. If they don't, then I don't understand where their comment is derived from, but if they do then I am really surprised that this was not fully explained to you at the outset of your IVA, given the magnum of equity share you presently appear to have.