www.iva.co.uk

Hi

I am 2 and a bit years into my 5 year IVA, and have just been made aware of the 4th year rule regarding using equity in your property to pay final payments to the IVA.

I have been through my T+C's on my IVA and there is no mention of this rule, under section 4.1 Residential Property there is a statement as follows

' Consequently, mt creditors are unlikely to receive any greater benefit than is already being offered and i therefore propose to exclude the property from the Voluntary Arrangement'.

Please could anyone advise whether the 4th year rule is applicable in my IVA.

Many Thanks for your help.

Hi Phill
I would say that if your proposal says the equity is excluded then the 4th year rule wont apply to you. To be on the safeside i would check this with your IP but it seems for you there wont be any equity release required.
Is there only very little equity in your property?

mrs skint

Hi there
when your IVA was agreed by your creditors did they request any modifications such as a 4th year or final year valuation, to your proposal OR did your IP discuss any modifications requested by your creditors? If any modifications were proposed by your creditors you should have received a copy of these in writing and you would have had to have agreed to them before your IVA was accepted.

If in doubt contact your IP for clarification.

Melanie.n

Hi
Check your chairmans report following the creditors meeting and double check with your IP.
regards

Hi Phil,

I would call your I.P and query this or you could also take a look at the Chairmans report that you would've received once the creditors approved your IVA.

Hi Phil

Has the "4th year rule" been drawn to your attention by a mailshot from a 3rd party?

If the property was excluded from the proposal and the modifications did not bring it in then there is no requirement to do anything. I add my voice to the recommendation that you confirm your position with the Supervisor.

ian