12 month extention

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Hank56

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Post by Hank56 » Sun Sep 12, 2010 10:02 am
Hi there, I am into the last 6 months of my IVA and due to the current situation and my earnings I have no chance of getting a remortgage at present.
I am just wondering....if I manage to get an extention of our IVA for 12 months (or can it possibly be extended even longer?) Would the extra payments be taken off of our final payment or would they be on top of the final payment? Thank you
 
 

liamjames

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Post by liamjames » Sun Sep 12, 2010 10:34 am
Hi Hank!

Do I understand correctly - your "final payment" is the lump sum expected by means of a remortgage? If so, then generally your 12 monthly extension payments would be instead of this, and you wouldn't have to pay any extra. But creditors do take lots into account, like how much equity we're talking about and how the dividend will be affected.

You should always check with your IP when new terms are proposed or accepted, because every IVA is different.

Take care! :)
Take care,

Liam James
Varden Nuttall
http://www.vardennuttall.co.uk

Read our reviews here: http://www.iva.com/iva_companies/Varden_Nuttall.asp
 
 

Hank56

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Post by Hank56 » Sun Sep 12, 2010 10:49 am
Hello liamjames
Thanks for the reply, yes you are correct in assuming that our final payment is the lump sum at the end of the IVA....in our case releasing equity from our house (£101,000!!) in which case we have more than enough equity, but obviously we dont want to give up our house if at all possible.
 
 

kallis3

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Post by kallis3 » Sun Sep 12, 2010 10:51 am
If it is anything like mine, then the 12 month extension will be in lieu of equity.

What does it say in your Chairman's Report/proposal?
Sharing from experiences of dealing with debt
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Hank56

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Post by Hank56 » Sun Sep 12, 2010 9:42 pm
Hello there, sorry about the delayed reply, I have just had a quick look through the chairmans proposal and I cannot find anything there other than needing to remortgage for the final payment!
 
 

MelanieGiles

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Post by MelanieGiles » Sun Sep 12, 2010 9:45 pm
How much equity was there in the property when your IVA was originally presented, and was this properly disclosed by your IP at the time. Also how much were your debts in total?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Hank56

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Post by Hank56 » Sun Sep 12, 2010 10:01 pm
Hello Melanie
The equity in our property at the time (Feb 2006) was £135,277 and disclosed by our IP.
Our debts at the time (not including our mortgage) were £252,402.
At the end of the 60 months we would have paid £41,700 into the IVA with a final lump sum of £101,458 by means of a remortgage.
 
 

MelanieGiles

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Post by MelanieGiles » Sun Sep 12, 2010 10:06 pm
Ouch - one wonders how that was ever going to be achievable without a sale of the property. How much is your house currently worth?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Hank56

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Post by Hank56 » Sun Sep 12, 2010 10:16 pm
I reckon about £280,000 at the moment!
Going back to my original question...would it be possible to get a 12 month extention and if so, would the extra 12 months of payments be taken off of the final payment or would they be on top of it?
 
 

MelanieGiles

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Post by MelanieGiles » Sun Sep 12, 2010 10:18 pm
Only your creditors can answer that Hank - but at the end of the day you can expect them to look very closely at the benefit of twelve extra payments compared to the current level of equity in your property.

What does your own IP actually advise?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Hank56

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Post by Hank56 » Sun Sep 12, 2010 10:37 pm
I havent actually asked them, since they changed from Baker Tilly to Debt lifeboat a year ago, they have been a pain and quite frankly incompetent at times!
 
 

MelanieGiles

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Post by MelanieGiles » Sun Sep 12, 2010 11:41 pm
They haven't changed - Debt Lifeboat is just a trading style of Baker Tilly. I would ask to speak to your IP directly about this rather important matter.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Hank56

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Post by Hank56 » Mon Sep 13, 2010 7:56 pm
Okay, I will do that, thank you for the advice.
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