4th year equity

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c.j

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Post by c.j » Thu Aug 12, 2010 8:27 pm
Is it possible if you are in neg. equity, rather than pay an extra year, to pay the same amount in one lump sum if a relative offers this?
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MelanieGiles

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Post by MelanieGiles » Thu Aug 12, 2010 8:40 pm
If you are in negative equity, there should be no monies to pay over unless your IVA valued the equity at the start of the arrangement rather than the end. Is this the case in your IVA?
Regards, Melanie Giles, Insolvency Practitioner
 
 

c.j

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Post by c.j » Fri Aug 13, 2010 3:45 pm
the house is to be valued at the end,but there is a clause stating that i will have to pay another 12 months if no equity.It is the amount of the 12 monthly payments i am asking if we could pay in a lump sum if i can borrow of bank of mum and dad rather than extending the iva by 12 months.seems silly but i just want it to finish in 5 years not 6.
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MelanieGiles

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Post by MelanieGiles » Sat Aug 14, 2010 12:10 am
Are you sure it says that - because if it does this is a complete nonsense! Extra payments when you have no equity! I've never heard of anything so ridiculous.
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orange

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Post by orange » Sat Aug 14, 2010 6:58 pm
we are in year six.this year is paying 12 payments to pay off un raised equity,after the requested valuation was in negative equity
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kallis3

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Post by kallis3 » Sat Aug 14, 2010 7:19 pm
Ours was valued at the start. If, when it comes to remortgaging, our equity is less than £5k then the IVA concludes at the end of the 5th year.

Not going to happen though.[:(]
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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Imhotep

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Post by Imhotep » Sat Aug 14, 2010 8:49 pm
I'm totally confused.

I thought that if your property was valued at the 4 1/2 - 5 year mark and there was 5k (or is it percent) or less equity, or you couldn't raise the equity that was when you may have to make an additional 12 monthly payments.

What happens if, say, at the end of the 5 years you have equity but cannot release it, then you go into 12 additional payments but this doesn't equate to the original amount of credit outstanding? Is your IVA considered settled?

I'm just getting confused as I've read that your IVA is complete when all outstanding debts are paid in full... or does that just refer to equity release in the 5th year?

I think I've been reading too much...
 
 

kallis3

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Post by kallis3 » Sat Aug 14, 2010 9:16 pm
It's all down to what it says in your proposal/chairmans report.

If you cannot raise equity then the IVA usually continues for an extra 12 months and then it is considered settled.

Whatever is left at the end of the IVA is written off and you are debt free.

Even if we can release the equity, we will not have paid our creditors in full.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

MelanieGiles

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Post by MelanieGiles » Sat Aug 14, 2010 9:23 pm
Forums like this, whilst immensely helpful, can be confusing where a lot of people are giving their own opinions without detailed knowledge of your case. Revert back to your IP if you are confused, as this important area should have been thoroughly discussed with you before you entered into the arrangement.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Imhotep

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Post by Imhotep » Sat Aug 14, 2010 9:37 pm
Thanks kallis3 and Melanie!

I guess that they are 'individual' also complicates things a bit as well. People can only comment on their own experiences and I'm sure these differ from IVA to IVA.

We haven't signed up with our IVA yet - we have what I think is our final telephone call before entering it on Monday - but am desperately trying to get my head around the right questions to answer.

This forum is invaluable, you get advice from both points of view.
 
 

kallis3

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Post by kallis3 » Sat Aug 14, 2010 10:01 pm
Make sure you are totally happy with everything before signing a proposal. Ask away if there is anything you are unsure of.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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