www.iva.co.uk

Good evening, i would have completed 3 years in my IVA in December, never missed any payments etc.

Our Contract at work is up in March 2012, it works out i owe currently 12k out ish on the remainder.

I have spoke to my provider and explained a family member is willing to settle for me at 10k.

they researched and said that because in the 6th year of my iva there is a clause to review my house price and equity available that my only option is to offer the full amount of 12ish.

I am pressing other family members to help, but i suppose my question is are they just trying to get the max or is it worth offering and seeing what comes back. can you submit multiple offers if the ofirst offer is rejected.

My mortgage is currently 232k value probably the same or less in the current market, the way things are cant see it being worth much more in 2 years time.

I currently pay 430 a month and when my contract finishes I will be in the job market , I feel confident of finding a job as i have 2 kids and a house to run my mortgage is 1400 quid on its own

Hi. What is the value of the house if sold today ?

If your offer is refused you can come back with a better offer, but you will only get away with it once, I would imagine, as the first offer is supposed to be the best you can do !

I reckon value 225 ish 230 max. 10k is really the most but if it was 11 or so I would ask elsewhere but it would be difficult

OK. So you are in negative equity now. Add to this the usual requirement to limit the equity release to 85% LTV, there will need to be a substantial increase in property values over the next 2 years to give you enough equity to trigger a release clause.

I would ask them to put forward a F&F settlement offer of the £10k, explaining that your employment is about to end, and, in the current climate, it will be difficult to get re-employed very quickly. Also get your IP to do the math on your equity to see exactly how much increase in value you would need to see before the creditors would be entitled to a release. Then put it to the creditors that, on balance, it is very unlikley that there will be that sort of increase in the next 5 years, let alone 2, due to the current economic climate, which is forcast to last at least until 2015.

It will depend upon how persuasive (and enthusiastic to assist) your IP is. But in the long term, the creditors are very unlikely to see any equity or extension, so they might as well draw a line underneath the whole saga now, and walk away with the £10, rather than getting £12k, spread over 2 years.