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Posted: Sat Aug 11, 2007 7:32 pm
by BlueShoes
Hi
For those of you who haven't yet heard, our IVA was agreed [:D]this week, after a nail-biting couple of days, and some determined negotiations from Melanie and her team (particularly Sarah-who persevered endlessly, particularly with our poor phone link, as we were on holiday in Norfolk-and no, not 5-star luxury(sadly[:(]) but house-sitting for a friend who has no idea that her house offers us our only chance of a holiday for the next few years[:D]!)
We have an interesting 4th year equity release clause which will only happen if the creditors get back more by us doing that, than our original proposal to pay for an additional 12 months. So we have to do one or the other! (we currently have about £3000 equity in our house, which is valued at £190,000)
A few questions....
1. Do we get the property re-valued at the start or end of the 4th year? Will the creditors accept a valuation by the same estate agent who valued the house for the IVA figures? Or does it have to be a building society valuation (in which case, how do we pay for this?)
2. If the difference is negligible ie. the equity release clause will only realise +5% for example, can we re-negotiate and add an additional payment on the end of the 6th year?
3. If we do re-mortgage, is the IVA monthly contribution reduced by the additional mortgage costs? Or, if house prices go bonkers, and we can remortgage enough to settle (ie 100% + IP fees, does the IVA come to an end?)
4. We have early redemption fees to pay on our mortgage, so are these taken into account when calculating the creditors return?
Thanks-so many questions..but actually have such a big smile on my face at the moment my face aches!
Blue

Posted: Sun Aug 12, 2007 1:54 pm
by MelanieGiles
Hi there

We can deal with these sort of questions for you off-line - but so that other forum members can also benefit - here goes!

1 Where property prices are rising, get the valuation done as early as possible, if house prices are falling, it is better to hang on. You will have to take a decision on this at the time. Your IP will accept a valuation completed by the original agents.

2 You can renegotiate, but any deviation from the original IVA terms will need to be agreed by creditors at another creditors meeting.

3 Yes and if you can remortgage sufficient to pay creditors and costs in full the IVA will be brought to a satisfactory conclusion.

4 Your redemption figure has already been taken into account in the mortgage figure confirmed to creditors.

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

Posted: Sun Aug 12, 2007 1:57 pm
by BlueShoes
Thanks melanie
Blue