IVA agreed

[claire]

Further to my previous posting today, just heard from my IP and my IVA has been accepted just one modification to do with my property as my original proposal did not include an equity release as my property is a shared ownership house (1 own 50% accord housing own the rest) and i pay rent and mortgage, however they have stated that in year 4 i have to get a mortgage redemption penalty figure, 2 remortgage quotes to release 100% of the equity, if this is done it would end the IVA a year early..my problem is with shared ownership mortgages you can only release equity to purchase additional shares in the property not for any other reason so thats unlikely to happen. I know its years down the line but what would happen in that instance?

[MelanieGiles]

Hi Claire

Your IP needs to make this clear to the creditor right now and ask for the modification to be removed. There is no point worrying about something which cannot be achieved for the next four years.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[claire]

Thanks Melanie, im not worrying just asking what would happen if this can not be achieved, would the IVA ultimately fail? I asked my IP and they just said that should this happen then a meeting would be called and the matter discussed.

Claire

[MelanieGiles]

That is strange advice, when your IP is alert to a potential problem now. Certainly not the way I would handle the issue!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Yes,you must get this point clarified by your IP now.Over the next few years you will find it tough and if you have the worry and uncertainty of this equity release hanging over you it will make it only harder.You need a clear pathway ahead, so speak again with your IP and get something in writing.
Regards

[claire]

HI i rang my IP last night just to clarify and was told not to worry as there was another modification stating that if the equity release can not be done then a meeting will be undertaken to propose what to do, it would probably entail extending the IVA by a yr. She also said that the IVA will not fail if i can not release the equity so thats a weight off my mind.

Claire

[MelanieGiles]

Claire

I really do not understand why your IP is not dealing with this issue now - as I have previously posted. The cynic in me says that this is another way of getting more fees, as the IP knows they will have to call that meeting.

You know now that you cannot equity release as you have been asked to. Why enter into an IVA you know that you cannot comply with, and run the risk that creditors may not accept your revised proposals at another meeting. This makes absolutely no sense to me whatsover!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[claire]

Hi Melanie, is that likely to happen? Would you suggest that i dont enter into this IVA if this modification stays? if i do that what would happen then? Sorry for the questions but im just getting the same thing off my IP whereby they tell me not to worry and they can get round that in year 4

Claire

[claire]

Sorry for got to say that there was another modification concerning the IP fees whereby they carnt exceed a certain amount, i didnt catch the figure but was told not to worry about that as it was just concerning their fees!!

Claire

[MelanieGiles]

Claire

A sensible chat between your IP and the creditor concerned will sort this out swiftly. I expect that your inability to remortgage during the final year was not properly explained within the IVA proposal, as this would have avoided this situation. I cannot see the sense of waiting 4 years to resolve something which can easily be resolved now. Why is your IP reluctant to do this - I suggest you ask them that question, or ask to speak to the creditor directly yourself. I very regularly get these sort of modifications withdrawn.

You do not need to be concerned about the restriction on IP fees. That is for your IP to take on board.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk