Another year on my IVA??

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alison340
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by alison340 » Tue Jun 26, 2018 4:31 pm
My IVA is over 72 months, at the start of the IVA the company said this is because of my age, I will be 64 at the end of the 72 months. The extra 12 months was because i would not qualify for a remorgage to release equity from my house. However in the documents it still states that 6 months before the end of the IVA I will be expected to get a valuation of my property for equity release. When i spoke to somebody at the company Aperture( originally Debt Free Direct) he stated that if i cannot get a remorgage to release equity then I will be expected to pay a 7th year, is that correct? It seems very unfair as I thought the extra 12 months was added at the start of my IVA.
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Foggy
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by Foggy » Tue Jun 26, 2018 5:07 pm
alison340 wrote:
My IVA is over 72 months, at the start of the IVA the company said this is because of my age, I will be 64 at the end of the 72 months. The extra 12 months was because i would not qualify for a remorgage to release equity from my house. However in the documents it still states that 6 months before the end of the IVA I will be expected to get a valuation of my property for equity release. When i spoke to somebody at the company Aperture( originally Debt Free Direct) he stated that if i cannot get a remorgage to release equity then I will be expected to pay a 7th year, is that correct? It seems very unfair as I thought the extra 12 months was added at the start of my IVA.


Dig out all of your initial paperwork and see if it mentions that 12 months was already added in lieu of equity release (possibly in the Chairman's Report of the initial meeting). If not ask Aperture to explain exactly why the term was extended prematurely.

Out of interest was one of your creditors NRAM (Northern Rock) ?
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Lisa Thomas
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by Lisa Thomas » Wed Jun 27, 2018 8:58 am
Most 'standard' IVAs last for 60 months plus an extra year is then added IF the debtor has equitable interest of over £5k, making a lot of IVAs 72 months.

You need to check whether your 72 months includes the extension, otherwise it could increase to 84 months...

Also check the level of equity - if you have the relevant terms and have less than £5k then the extension won't apply to you.

https://youtu.be/PHfc85n39U4
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alison340
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by alison340 » Sun Jul 15, 2018 4:41 pm
I spoke in great detail to Aperture. Apparantly i signed up to 72 months to give the creditirs a better return because it is unlightly that i will be able to get a remortgage. There is probably about 35-40k equity in the property. They said the likelihood of paying a further year could well be possible. Having spoken to my brother who is worried that I may have to continue working full time for a further till turned 65. I am already struggling to work full time, a further year will mean another 3 years to work and behond to keep up payments to IVA. My brother is offering £4.500 as a final settlement I have 20 months left of the 72 months, which on my current payment would be around £3750. Is £4500 a realistic offer to complete IVA? This is not a gift and if creditors do not agree then I will just have to continue as I am. I am in the process of being tested for early onset dementia. Any advise would be much appreciated, I am 62.
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Foggy
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by Foggy » Sun Jul 15, 2018 5:11 pm
If the IVA were to go to term and the 12 month extension was appiled ( which it looks like it would ) the creditors stand to get around £6k more fom you. Considering that you would be knocking almost three years off the term you wold be saving them a lump in admin costs. I would think that £4.5 k would be looked at sympathetically, especially if you highlight the health concerns, which could blight the arrangement before the IVA ends if left to run.
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by Foggy » Sun Jul 15, 2018 5:13 pm
I would add that I consider extending the IVA for equity release reasons at the start and then to also rely on a further extension in lieu of equity release to be questionable practice.
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alison340
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by alison340 » Mon Jul 16, 2018 11:46 am
Thank you for your replies. They told me at aperture that contacting the creditors with a settlement figure could take up to 4 months before I would get a reply on whether they accept the offer, would it be acceptable to add that the payments would be reduced over the time it takes the creditors to make a decision? They also said to add to my letter a copy of my brother's bank statement showing that he has the £4500 available, my brother said he would blackout his address, sort code and account number and would only disclose this information if the creditors where in agreement to take the settlement offer, they also want a copy of his passport and a covering letter why he is offering this settlement. Surely this would come after the creditors have agreed because if they disagree then there is no further contact, I can understand why my brother is unhappy to give his statement upfront.
Many thanks for your help.
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Foggy
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by Foggy » Mon Jul 16, 2018 12:05 pm
alison340 wrote:
Thank you for your replies. They told me at aperture that contacting the creditors with a settlement figure could take up to 4 months before I would get a reply on whether they accept the offer, would it be acceptable to add that the payments would be reduced over the time it takes the creditors to make a decision? They also said to add to my letter a copy of my brother's bank statement showing that he has the £4500 available, my brother said he would blackout his address, sort code and account number and would only disclose this information if the creditors where in agreement to take the settlement offer, they also want a copy of his passport and a covering letter why he is offering this settlement. Surely this would come after the creditors have agreed because if they disagree then there is no further contact, I can understand why my brother is unhappy to give his statement upfront.
Many thanks for your help.


Statements and ID are required under money laundering regulations and are usually dealt with before the creditors are approached. The IP needs to be in a position to present a "verified" offer.
It is also a regular condition, these days, that people put in a clause stating that the offer will reduce by the amount of payments made after a given date. 4 months, although happening too often, is too long and is over the agreed times in standard terms and conditions. However, you are in their hands on this !
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