Coronavirus and IVA

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NeilJ

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Post by NeilJ » Thu Jan 28, 2021 12:57 pm
What's the experts view on this and how do you approach your IVA provider to implement ?

1.12 No attempt should be made to realise a consumer’s home equity under paragraph 9 of the protocol during the pandemic unless the consumer agrees to proceed. The supervisor will retain the discretion to extend the IVA for up to 12 months in order to allow the consumer to complete their IVA. Voluntary release of equity can continue to be included in new proposals.

Does it relate to how long is left on the IVA, two years from June 2031 in my case ?

Foggy

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Post by Foggy » Thu Jan 28, 2021 3:43 pm
These amendments are currently in force until 30 April 2021. They will apply if your anticipated equity release clause trigger (month 54 of most agreements) falls before this. The 12 month extension mentioned will commence at the end of the initially agreed period ( typically 60 months from the start), so the IVA would run for 72 months total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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NeilJ

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Post by NeilJ » Thu Jan 28, 2021 4:09 pm
My IVA contains this clause :
"13. The duration of the arrangement must be extended by 12 months, thereby
increasing the overall payment term of the arrangement to 72 months."
and also this :
"v. Asset realisations in the arrangement are payable from:
Asset Name Estimated to Realise £
9 monthly contributions of £207 £ 1,863
63 monthly contributions of £189 £ 11,907
12 monthly contributions of £189 to purchase equity £ 2,268
Total Assets £ 16,038"

As my IVA began in June 2016 would the 54th month fall December 2020 if it is in line with the PCIVA guidelines but it also says in the same part "unless the IVA has been extended for any reason" ?

So, is my IVA extended longer than normal therefore moving the date that equity release should be investigated ?

Foggy

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Post by Foggy » Thu Jan 28, 2021 4:38 pm
I don't see that equity has to be addressed AND you need pay to buy it out by the extra payments ! But, if the IVA was a 72 month IVA at the start then I would have thought that the equity release clause should be triggered at month 66, unless otherwise specified.

I realise that you have this errant clause saying ( according to Jarvis) that equity release still applies as equity was not released in the first 12 months --- which I do not understand, but they cannot ask you to pay the extra 12 months for the equity as well as release equity ( or, I assume, add another 12 months in lieu). I would refer this back to Aperture as someone has cocked up somewhere -- they drew the proposal up so should be able to explain.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

NeilJ

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Post by NeilJ » Thu Jan 28, 2021 5:01 pm
Hi Foggy,
Thanks for the replies so far, this is a testing time for me at the moment. Aperture sold the IVA so I don't think I can refer it back to them.

Foggy

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Post by Foggy » Thu Jan 28, 2021 5:31 pm
Thu Jan 28, 2021 5:01 pmNeilJ wrote:
Hi Foggy,
Thanks for the replies so far, this is a testing time for me at the moment. Aperture sold the IVA so I don't think I can refer it back to them.
I was thinking, as Aperture drafted the document and agreed the extra payments in lieu of equity at the outset, that they could explain their thinking and the operation of the clauses in conflict to Jarvis.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

NeilJ

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Joined: Thu Jan 28, 2021 11:02 am

Post by NeilJ » Thu Mar 04, 2021 10:25 am
Just thought I'd give an update on this, checked through my IVA about 100 times to confirm the property is not mentioned in the IVA at all other than at proposal stage when it was offered to pay an extra year as explained above.
Phoned Jarvis (Debt Movement) and they confirmed the extra year was already 'activated' just wish they had read the IVA properly before issuing an official letter and instructing a third party to investigate equity release.
These initial interactions with Jarvis / Debt Movement have made me feel really uneasy about there handling of my IVA to the point where I'm constantly checking e-mails to see if they have sent anything else to deal with that will cause me unnecessary stress and anxiety.

Foggy

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Post by Foggy » Thu Mar 04, 2021 3:50 pm
Thu Mar 04, 2021 10:25 amNeilJ wrote:
Just thought I'd give an update on this, checked through my IVA about 100 times to confirm the property is not mentioned in the IVA at all other than at proposal stage when it was offered to pay an extra year as explained above.
Phoned Jarvis (Debt Movement) and they confirmed the extra year was already 'activated' just wish they had read the IVA properly before issuing an official letter and instructing a third party to investigate equity release.
These initial interactions with Jarvis / Debt Movement have made me feel really uneasy about there handling of my IVA to the point where I'm constantly checking e-mails to see if they have sent anything else to deal with that will cause me unnecessary stress and anxiety.
Unfortunately this seems to be a recurring theme - where a firm takes on another's caseload and seems unable to understand that the acquired cases might not all be operated on the exact same terms as their own cases. Those administering the cases do not actually read the case history before firing all guns against a perceived breach. Added to which they have had their workload doubled overnight, usually with no extra resourcing !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

NeilJ

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Joined: Thu Jan 28, 2021 11:02 am

Post by NeilJ » Wed Mar 17, 2021 1:27 pm
Two more years after June 21 then apart from waiting for the completion certificate, I can close this 7 year chapter of my life and get on without this constant cloud hanging over my head. Not looking forward to this years payment review with them at all though.

kallis3

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Post by kallis3 » Wed Mar 17, 2021 3:18 pm
Fingers crossed it all goes ok.
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.
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