www.iva.co.uk

Hi I sold my house recently and my half of the equity was just over £1300. The house was originally included in the Iva but when me and my ex split our interlocking Ivas the house was taken out as an asset. I ended up paying an extra year into the Iva. When the property was going through to sell the Iva company had already taken their name off the land registry. Not sure if they did this when the house assets was changed at the variation meeting. My question is do I have to pay all my equity over to the Iva? I made my last payment in April and waiting for my final review outcome and cc. Thanks x

If the house was made an excluded asset then the proceeds should be yours.

It does say the house has been excluded as an asset but not sure if they would class it as a windfall. Thanks.

No but if it was excluded I don't understand why you had the year extension.

Either way if you have had a year extension added in lieu of the equity then the equity will have been dealt with which is why the IP would have removed the restriction.

As far as I can tell from what you have told us the funds are yours to keep.

Hi Lisa when we had the variation meeting the house was in negative equity and therefore it was taken out as an asset. I paid an extra year to enable the creditors to get back as much as they can. I paid my Iva for 6 years. Thanks Tracey.

That doesn't quite make sense Tracey.

If the property was excluded then the year extension would not have been relevant.

Was the extra year due to arrears of contributions? Or was your IVA always meant to be a 6 year one (plus the potential extension) so could have actually been 7 years (if the extension had been applicable)?

Hi Lisa it was a 5 year Iva originally then the equity release in the 5th year. I split my iva with my ex a few years ago and on the variation report it states the house was taken out as an asset and a years extension applied. I was not in arrears. Thanks.

Hi

They couldn't have it both ways. Either you paid an extra year for the house or it was excluded from the IVA.

Check the specific wording of the variation report.

Hi Lisa. The letter was dated 11 September 2012. Accepted variation letter.

This is what it states.

That the term of the arrangement be extended by a period of 12 months in order to maximise the yield to creditors.

That the debtor's property be removed as an asset of the arrangement.

Hope this makes sense. Thanks.

Any advice please x

From that, I would say that the extension was applied as a term of the variation and not in connection with equity release, so the extension was legitimate.

They took the house out but got you to extend for a year anyway which worked out the same had they not excluded the house.

Rather strange.