www.iva.co.uk

Hi hoping for a bit of advise \ clarification?

I have 10 months left on my IVA, which Northern Rock (proposed by Eversheads LLP on behalf of Northern Rock) from the outset put a modification into my IVA proposal stating that the IVA be extended to 72 months from 60 months, they also stated that any equity release will now happen at month 66 (which is fast approaching) and if I am unable to obtain a remortgage the 12 month extension will happen after month 72, as we all know it is nearly impossible to obtain a remortgage whilst in an IVA so with this clause in the IVA proposal I should be resigned to a 12 month extension!!

But on the same modifications page of my IVA proposal MBNA (Eversheads proposed on behalf of MBNA) state that "The duration of the arrangement shall not exceed 72 months"!!

So I am trying to understand which one of these will stand, as one is saying that it will not exceed 72 months yet the other is saying that a 12 month extension in lieu of not being able to obtain a remortgage will happen after 72 months??

Also both modificatons from the original proposal where proposed by Evershead on behalf of Northern Rock and MBNA, I presume the same company that has contradicted itself in the same proposal!!

Help need to know if I am to put the bubbles on ice or hold!!

Your IP ought to have deconflicted that modification on the day of your creditors' meeting, but this may be academic if you do not have sufficient equity to warrant either the re-mortgage or the extension of time.

I would get that sorted out before you worry about what needs to now happen - which might involve the calling of another creditors meeting.

Hi Melanie, it seems that my IP did not pick up on this and to be honest I have only just really looked at my proposal due to it hopefully coming to an end.

You say it should be academic if I do not have sufficient equity but NRAM (although this debt has now been sold on) state a 12 month extension if equity cannot be released yet MBNA clearly state it will not exceed 72 months!!

This does not fill me with confidence, that I will be able to complete my IVA after the 72 months and worry that two conflicting modifications proposed by the same company acting on behalf of 2 of my creditors will cause the last 60 or so months of payments to fail, I have come this far and would hate to think that these conflicting modifications will force another 12 months or for me to have to go bankrupt?

It is really their job to spot things like this, and not down to you at the end of the day.

Your IVA will only need to extend past 72 months if there is equity to raise. What is your property valued at, and how much do you presently owe on your mortgage.

I think the house is worth approx. £124,000 with about £103,000 outstanding on the mortgage.

Assuming that you have the usual IVA Protocol provisions regarding equity release, there will be nothing to raise on those figures and no extension of the IVA.

Thanks Melanie