www.iva.co.uk

I entered into an IVA in 2008 and at the original meeting of creditors the majority debt holder insisted on an additional year adding to the IVA and a switch on my mortgage to interest only. So to start my IVA was 72 months not 60. I am now 3 months from completion and my IP is stating that a further 12 months of payments will be required despite the fact that a further meeting with the creditors has not yet happened. I was under the assumption that the extra 12 months at the start of the IVA was due to the fact that a re-mortgage was unlikely in the 4th year. I am being told by my IP that this is not the case and that I will now need to pay for a seventh year. Any insight to this as very frustrated and that bright light at the end of the tunnel is dimming fast.

I am afraid that this is quite normal for those who have had to enter into a 6 year (as opposed to 5) IVA. The extra year is just that -- extra, and not in lieu of the equity release provisions.

NRAM are notorious for doing this and several other creditors have picked up the habit.

Sorry that the news is not better for you Robert664. 7 years is a very long time to be in an IVA ...presumably this was not made clear to you at the start of your IVA ?

Foggy is right - I am coming to the end of a 72 month IVA thanks to Northern Rock, fortunately we don't have any equity so I shouldn't have to pay the extra year.

NRock the people who invented 125% mortgages.Very stupid.
Even more stupid... refused to accept iva early on and got people BR.

Dancer, I too have no equity but dfd is stating that I will still have to pay an extra 12 months. This is after being told that it would be unlikely. I contact dfd regularly to keep them reminded that we are nearing the end and need updates as to where we are so was a shock to get the extension letter. They have also said that the review of any potential equity release was only just completed recently and was not done in year 4. Would have been nice to know that a couple of years ago.

Also in 6 year iva, and just prior to original meeting i was told over the phone that one creditor wanted 6 not 5 years due to no equity at the end.Agreed to this, but it wasn't fully explained.

Robertd664, if you have no equity, what reason have they given to extend. Also if they have recently done a review of equity, did you not have to give a valuation of your house plus remaining mortgage.

I am another in the 72 month IVA due to Northern Rock. Everyone else accepted 5 years as this still gave a health 70p/£ dividend.

Not good enough for northern rock who with 27% of debt insisted on 6 years or bankruptcy.

Chrisdn88, dfd is telling me that there is not enough equity to release funds and therefore my creditors will ask for the additional 12 month contribution period as outlined in the original proposal. I did give a recent evaluation and outstanding mortgage amount to them. My issue with the re-mortgage is that it should have been done 2 years ago as stated in the original proposal and had it been done then I would not be sitting here now thinking "yes only 3 months to go"

Can anybody tell me the likelihood of having to re-pay 100%/£ on this as dfd per their usual threatening manner said that there is no yearly limit to an IVA and that I could very well wind up paying 100% back. I do not have a problem with 100% as it is my debt and I feel responsible for it but would be nice to know this up front so no surprises.

Chrisdn88, everything depends upon what is written in the arrangement. Many have a £5k de minimis clause, so, if no or little equity, the property is excluded and there is no extension.

Some do not and it is a case of release or extend. It matters not whether the failure to release is due to being unable to remortgage or simply that there is no equity.

I fear that the equity release provisions are often glossed over by some firms eager to sign you up.

Robert, it does happen, though not by extending the IVA solely for that purpose. The term can only be extended according to the clauses contained in the arrangement.

My proposal has the £5000 deminimus clause & that is why I should not have to extend but it sounds as though you have different terms.

Hi Robert,

DFD must be calculating that you have equity in your home so as to warrant the 12 months extra.

As your IVA was taken out around the same time as ours (we are with DFD too) you may want to read the thread about our equity issues and how they were successfully resolved. You can read our thread here:

http://www.iva.co.uk/forum/topic.asp?TO ... hichpage=1

I don't know how much equity, if any, you have but this may help as you may well have the same troublesome clause in your IVA wording that caused us so much trouble.

Good luck