www.iva.co.uk

Hi I wonder if anyone can help,

I am just about to enter my final year of my IVA, originally when I got the IVA I was instructed that I would need to pay back 70p in the £1 however if I wish to pay for the iva sooner I will need to pay 100p in the £1 + 8% interest.

Due to having a good job and a couple of bonuses I have been paying well into the 100p in the £1 for the last 3 months with 12 months to go.

my question is that there was a clause on my original agreement that if there was more than 5k left to pay at the end of the 5 year term when paying 70p in the £1 I would have to either release some equity in my home of keep paying for a 6th year.

with that being said do you think that will still be the case if there is more than 5K left on the 100p in the £1 or the 8% interest

Many Thanks

Hi. You will still be required to release equity up to the level of the full original debt plus fees and the 8% interest ---- this interest isn't often applied these days and many IP's request a variation to get the need to pay this removed -- always worth running past your IP.

We always ask for the statutory interest to be waived and creditors accept. As Foggy says speak to your IP.

Would the release in equity of the property still be the case if the property is in negative equity? so really at the end of the 5 year term there is a chance they are going to make me go a final 6th year so they can get back 100p in the £1 in though it was agreed in a court of law that they would accept 70p in the £1

this is very frustrating as you spend 5 years thinking 1 thing when really your just misled.

Depending upon the terms in your own proposal, it could be ( often is these days ) that if equity falls below £5k then the property is excluded and there is no extension. However, not all proposals are worded the same way -- so best to check your own paperwork.

Although they agreed to accept 70p/£, you, in your turn, agreed to pay more according to your circumstances.