60 months or 72

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medxb183
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by medxb183 » Sun Aug 12, 2018 9:10 am
Morning everyone and thank you for accepting me into the group
Firstly me and my wife have been in a iva since 2014 , I was self employed at the time and my business was struggling, we got ourselves into a financial mess and turned for help through a iva and where accepted , our monthly payments into the iva are low , started off at £55 p/m but has now increased slightly as I'm now employed but only work 3 days a week , my question is on the debtors proposals form it says
1.2 Payments -60 monthly payments over 72 months
1.3 I propose to make 12 extra payments at the end of my arrangements in lieu of the equity in my property .Due to my age and surplus it is unlikely that I will be able to release any equity from my property by way of remortgage

Speaking with my advisor yesterday she made out that my iva is for 7 years in total , but I spoke to another advisor last year and she said I'd be looking at the equity clause this coming Christmas with a view to adding on another 12 months to my iva which should end in 2020 ,I'm a bit confused now as to what length my iva is for , can anybody help please
Thank you in advance
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Foggy
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by Foggy » Sun Aug 12, 2018 9:21 am
Most IVA's have 6 months built in for admin at the end, so are stated as being 60 payments over 66 months. That term is extendable by the equity release clause to be, if the clause is triggered, 72 payments over 80 months. It would seem that your firm --- who are they? --- have built in a 12 month admin period as opposed to the usual 6.

They cannot have a second bite at equity if this was already covered in the agreement. I would imagine that your second advisor was spouting without having actually read your proposal (as they often do) which does differ from the norm in that the equity position has already been agreed at the outset. What does the Chairman's Report say on the matter ( it could over-ride the proposal ) ?
medxb183
Posts: 6
by medxb183 » Sun Aug 12, 2018 9:43 am
Thanks Foggy , I will dig the chairmans report out later to double check , but from memory I'm pretty certain it stated it would end in 2020 when I'm 60 yo , do you still carry on paying in the admin period ?
medxb183
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by medxb183 » Sun Aug 12, 2018 9:52 am
Sorry , where with payplan
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kallis3
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by kallis3 » Sun Aug 12, 2018 9:58 am
Payplan tend to have their own agenda so best check with them.
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Foggy
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by Foggy » Sun Aug 12, 2018 10:26 am
medxb183 wrote:
Thanks Foggy , I will dig the chairmans report out later to double check , but from memory I'm pretty certain it stated it would end in 2020 when I'm 60 yo , do you still carry on paying in the admin period ?


After you make the required number of payments that is it .. no payments during the admin / closure period (unless you win the lottery, get a PPI refund or inherit).
medxb183
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by medxb183 » Sun Aug 12, 2018 11:33 am
Thanks again , I'll check again on chairmans report
medxb183
Posts: 6
by medxb183 » Sun Aug 12, 2018 2:58 pm
Looking at the chairmans report there doesn't seem to be anything stating time length of the iva , only thing it does state is too look at releasing equity at month 54 , so I presume that the proposal that was suggested by the chairman stands , I think !!
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Foggy
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by Foggy » Sun Aug 12, 2018 4:00 pm
medxb183 wrote:
Looking at the chairmans report there doesn't seem to be anything stating time length of the iva , only thing it does state is too look at releasing equity at month 54 , so I presume that the proposal that was suggested by the chairman stands , I think !!


The Chairman's Report would contain any variations from the proposed terms. If they make no reference to any particular aspect then the proposal stands as drawn. In "standard" arrangements equity is investigated 6 months before the end of the base period, in this case month 54, indicating they expect the normal term to conclude at month 60 and there to be a possibility of the 12 month extension, taking it to 72 months.
medxb183
Posts: 6
by medxb183 » Sun Aug 12, 2018 5:15 pm
Thanks foggy , much appreciated
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