www.iva.co.uk

iwill be 60 when my 4th year on my iva comes round what is troubling me at that age i can not afford to take on any more debt that is borrowing against the house to complete the iva,at the moment we owe 32000 on the mortgage plus 14000 0n a securedloan there is also a charging order of 17000 for an unsecured loan could you tell me what the will expect from me as regards the fourth year clause the house was worth around 12000 last year

Hi Geoff

So if I understand it you owe 63k on a house worth 120k ish. ( you may also have some redemption penalties on 1st & second mortgage & statutory interest on the charging order debt)

The IVA contract document will state clearly what the consequence is for the equity. You are looking for phrases like:-

1. "... remortgage and release all available equity"
2. ".. remortgage and release equity up to 85% of the value of house"
3. " release £X thousand pounds

If you can dig this out of our proposal plus tell us what the % yield is, what the debt was and what the monthly payment is the experts here can give you a good idea of the consequence.

Hope this helps

You will be required to do whatever the terms of the IVA required you to do, and this could only have been with your agreement at the outset, Geoff. What exactly do you feel you did agree to?