Can my IVA realistically be extend yet again ?

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cass402
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by cass402 » Thu Nov 16, 2017 1:25 am
I am getting towards the end of a 6 year IVA ( originally a 5 year IVA but was extended by one of my credititors ) and i am trying to sort out a re mortgage which i am confident will be rejected. Can my IVA company realistically extend it yet again? Also how rigid should their adherence be to their own IVA handbook which was issued at the start of the IVA.
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Foggy
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by Foggy » Thu Nov 16, 2017 8:00 am
Yes, they can extend again (assuming the earlier extra 12 months was added on when the IVA started ( as it often is if Northern Rock, for instance, is a lender)) .

And they have to stick rigidly to the agreed terms and conditions, as these form part of the agreement. However, they also contain a lot of room for discretion, where conflicts might arise.
cass402
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by cass402 » Thu Nov 16, 2017 9:52 am
Thanks for the response,
to be fair you nailed it, it was NR who added the extension. The reason i asked about the handbook was i was hit with a breach after refinancing a balloon payment for my car and after reading the handbook it turns out that balloon payments for car purchases are the one specific exclusion to taking on credit which shouldn't attract the ire of the IVA company.
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Foggy
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by Foggy » Thu Nov 16, 2017 10:04 am
cass402 wrote:
Thanks for the response,
to be fair you nailed it, it was NR who added the extension. The reason i asked about the handbook was i was hit with a breach after refinancing a balloon payment for my car and after reading the handbook it turns out that balloon payments for car purchases are the one specific exclusion to taking on credit which shouldn't attract the ire of the IVA company.


To be honest I am surprised you managed to re-finance the balloon payment -- which company was this with ? -- as most are refused and the agreements terminated. So not many IP's get as far as being able to say " yay or nay". I would always recomend that things such as this discussed at the outset and embedded in the body of the proposal, rather than relying on a, sometimes, obscure reference to Ts & Cs. Unfortunately most of us are at sixes and sevens during the set-up and these things don't always come to mind.
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kallis3
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by kallis3 » Thu Nov 16, 2017 11:43 am
I am also surprised as well. Usually the finance company don't want to know as Foggy says.
cass402
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by cass402 » Thu Nov 16, 2017 1:39 pm
It was Black Horse and they were really helpful. When i had the initial home visit from Tudor Kirk, the chap said that yes this would be no problem but it wasn't written into the actual agreement which i didn't pick up on straight away as i was really stressing over the amount of calls we were getting...i realise now in hindsight i should have checked more thoroughly.
One other thing which doesn't seem correct is my wife and i's wages have gone up by 38.5% in six years however our payments have risen by 45%. Not sure what calculations they have used.
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Foggy
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by Foggy » Thu Nov 16, 2017 2:20 pm
cass402 wrote:
It was Black Horse and they were really helpful. When i had the initial home visit from Tudor Kirk, the chap said that yes this would be no problem but it wasn't written into the actual agreement which i didn't pick up on straight away as i was really stressing over the amount of calls we were getting...i realise now in hindsight i should have checked more thoroughly.
One other thing which doesn't seem correct is my wife and i's wages have gone up by 38.5% in six years however our payments have risen by 45%. Not sure what calculations they have used.


I would get an explanation as to the rises in your payment... at worst they should only be 50% of the net increase in income (or reduction in outgoings) and they should only be based on your earnings if it is a sole IVA (both, if you are in interlocking IVA's).
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