www.iva.co.uk

so we paid our last fifth year iva payment on the 27th june 2014 and ever since then we've been in limbo as to what clear debt are going to do regarding a sixth year or a remortgage or a secured loan route ( even though this is not in our protocol my ip says we might have to do this ! ) They are currently in talks with gateway to finance to source a secured loan. is this a normal thing to be in limbo two months after our official last payment. Really fed up as just want to get on with either the extra year or another option. any advice helpful [:)] and if David Mond is around can you tell me why we are being taken down a secured loan route even though it's not in our protocol ? .

We have had several discussions on forum about this and a very highly regarded IP has taken legal advice to the effect that a secured loan IS NOT the same as a remortgage and, if the proposal states "remortgage" they cannot force a secured loan on you.

However ... this has yet to be tested.

Thanks for the reply Foggy. I know Melanie sought a legal view but as it's not been tested as you say, do we still have to comply with an ip's wishes as they could in theory say that you are not complying to help finish an iva and so they could fail it ? It's a mine field and I wish I could get David Monds view on it.

You need to comply with a "reasonable request". You have a contract stating attempt to remortgage or extend if unable to get a remortgage. It is not reasonable (nor, indeed, legal) to vary a contract without the agreement of all parties.

I agree Foggy. We tried to remortgage back in April after seeking a valuation I asked over ten different mortgage companies and got declined by all and had two written refusals that we sent to clear debt. Then in July they said that they have a man who will try to get the equity release for us so we spoke to him and he asked gateway to finance to work on it. Fast forward to now I had to contact clear debt at the start of August as I'd heard nothing and then again at the end of August. They are now revaluing our house in a view to a secured loan. One part of me says accept a secured loan and try to remortgage when my credit file is clear and the other part says why should I be forced into something that I shouldn't have to. Im not the first and won't be the last to experience this problem. There should be a proper review of this don't you think ?

I personally wouldn't be happy with a secured loan I will admit, I also agree why should you be forced in to something you don't want to do.

We chose the IVA to become debt free not take a secured loan against out property.

If they keep revaluing your house as time goes on there could be potentially more equity? I think the extra payments in lieu of equity is the best solution in my humble opinion.

Hi

In wouldn't be happy with a secured loan unless this was clearly discussed when first deciding on the IVA option

Hopefully David will pick this up and respond

Regards

Hmmm, this is the first time I have heard that ClearDebt have tried to offer a secured loan. Given the size an number of cases they manage, this maybe a worry for many in an IVA (me included).

I will of course update this for others to gain information. On a side note back in July one month after my final 5 year payment I rang clear debt to ask what happens now ? It was only then that I was told " oh you'd better stop any more standing orders till we know what we're doing " ! Worries me that if I hadn't made that call I would have been still paying into a sixth year that didnt exist ! ( well not yet anyway)

I would fight it ... if iva proposal does not mention secured loan as potential to release equity then I would fight for either ending iva or 12mth extension. As Lesley says we entered our ivas to ve ckear from debt not start new ones

Morning all,

I cannot identify the original poster from the forum name given, so if you could drop me an e mail directly, my details are in the experts section, then I will happily look into this matter for you.

Regards.

Hi Mike really pleased you picked this up I've dm you on twitter with my name and postcode. Thanks in advance for any help.

This whole secured loan route being tried on by these `companies` is purely and simply to try and get their 15% cut of any monies realised via a loan, as such a fee would generally be far more than 15% of an extra twelve payments should an extension be implemented.

We keep on seeing IVA completion problems regarding mis-sold ppi, well surely there is some serious mis-selling involving some of these insolvency companies who have made no mention verbally or written in legal documentation (IVA proposals) of secured loans as an equity release vehicle.

If some people do indeed end up taking out these ludicrously lengthy and extortionate secured loans after being bullied, threatened and harassed into doing so by the relevant insolvency companies trying to enforce them, then perhaps IVA`s themselves will be one of the next `mis-sold` targets of the claims specialist companies.

It isn`t the fault of debtors that they generally seem to be unable to remortgage come equity release time during the current financial climate, the 2014 protocol has addressed this `issue` by specifically including secured loans as an equity release tool if required, so debtors drafting a protocol compliant proposal will be aware of, and be agreeing to a secured loan as a way of releasing equity.

Those who`s pre 2014 IVA`s quite clearly have the `remortgage or extension if unable to remortgage` clause should have to do just that as advised, sold and drafted by their IP.

Wow Goosed I didn't know anything about the 15% cut ! I wonder if that's the same for all iva companies ? Of course there is a legal side but I guess also a moral side of trying to raise monies any way you can for creditors. I don't want to do the secured loan route but am I not responsible for the debt in the first place ? All will become clear for me soon I guess. Personally after 5 years of paying the iva I would just like to get on with it one way or the other and put the whole thing to rest once and for all as my car needs replacing now and my van I use for work has just clocked up 300,000 miles ! and I can't see it living much longer lol. A clear credit file next year would make things a lot easier to sort the vehicles out.

The 15% cut, happy buddha, is the way most IP's draw fees these days -- as 15% of monies introduced into the IVA, by whatever means.

This is a fee structure introduced by creditors, in my opinion, to drive the IP to collect more and hence earn more. But then, I AM a cynic !