Hi Jeff
It is this very thing that the IVA Council are seeking to crusade. People like you not being given appropriate advice about the important things surrounding their IVAs, such as the need to raise equity during the arrangement.
That said, if there is no equity in your property then 75% of zero is zero, so there may be nothing to raise in any case, however the proposal seems to indicate that this is to be based upon the original value and not one taken at any time in the future.
What figure was used for your property value for the purposes of the IVA, and how much did you owe on the mortgage at that time. Take this figure, divided it in two to establish your share of the equity, and then work out what 75% of this sum is. This is the figure that you will have to find before the end of the arrangement - and can be paid by extending the arrangement by an additionla year to fund ongoing payments towards this.
It is a shame that you do not feel that this was properly explained to you, but your IP will no doubt tell you it was you who signed the agreement and therefore you ought to have understood the consequences. What was your understanding of this clause when you signed the proposals, and what advice (if any) did your IP give you?
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp