what happens if there is a dramatic change

[brain]

Once the IVA is in force, what happens if there is a dramatic change in your circumstances, i.e. you are dependant on your vehicle for travelling to work? It breaks down or becomes no longer road worthy, and you need to obtain another vehicle.

Also if you are a home owner and the creditors what some of the equity either during or at the end of the 5 year term, does that mean you have to sell your property to release that equity

[Oliver]

Hello

Once in an IVA if needs be you could potentially take a payment break which would allow you to free up funds to pay for such things as car repairs, change of vehicle etc.... You can then make these payments up at the back of the IVA.

If it was something more serious such as you being made redundant, being off ill for long periods etc..... again your IP could ask your creditors to suspend your IVA allowing you to get back on your feet. These payments would then be made up at the back of the IVA.

Your equity release will almost always be incorporated through a mortgage or remortgage which means you will only be able to borrow up to c85-90% of your property's value. Your creditors will be aware of this and are happy to accept as this is comparable to the amount they may receive in bankruptcy if they were to force sale on your house as they are likely to get less than the true market value through a quick sale and cost deductions.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[aguise]

Hi there
As far as the property it is usually done by re mortgage during the fourth year, but there are other options of maybe downsizing if you can. Changes is circumstance have to be dealt with through your ip. There is the option with their permission to have payment holiday and extend the lenghth of your iva other changes may need to go back to the creditors by way of a variation meeting. Car wise , ours is quite old and not worth much, there should be some allowance in your income and expenditure for car repair, if it becomes un roadworthy then we have decided we will just get another old one to get us through the iva. You can get no credit without the express permission of your ip and would probably be hard to get anyway.

Hope that helps a bit

Ang

[aguise]

sorry Oliver

Not repeating , just too slow typing your reply was not there when I started.

Ang

[Oliver]

No worries Ang, glad we both agreed on the same answer.

All the best

Oliver