Is it correct that I will have to release equity to settle the IVA ?

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kev760

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Post by kev760 » Thu Apr 27, 2017 4:08 am
Evening
I have a current IVA with an agreed amount with creditors of 21. 000.
Up to date I have paid into the IVA 27400.
i have just received a letter from the IVA company saying bthat I will have to release equity in my property to settle the IVA.. s I've already paid in more than the agreed amount , is this correct ?

Foggy

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Post by Foggy » Thu Apr 27, 2017 6:48 am
During an IVA you will always owe the full original debt, plus fees and possible statutory interest. The IVA will continue until such time as this figure is met, or it comes to term, whichever is first.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

kallis3

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Post by kallis3 » Thu Apr 27, 2017 7:23 am
Hi,

Do you have any equity in your property? You are unlikely to be able to remortgage but your company may offer you a secured loan. Check your paperwork and see what it says.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Lisa Thomas

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Post by Lisa Thomas » Thu Apr 27, 2017 9:07 am
If you have the 'standard' equity clause, your equitable interest will need to be realised, somehow, if your equitable interest is over £5k.

The standard way is to extend your IVA by another year's worth of contributions as you almost definitely won't be able to remortgage.

It's possible to also take on a secured loan instead but this needs careful consideration and is not often the best way to manage it.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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