Entering year 6

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phil282

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Post by phil282 » Fri Nov 08, 2019 7:24 am
I have being in an IVA for 5 years
the IVA tried to releases equity in my house ,but apparently there isn't enough so I have entered the 6th year
my question is 1 after the 6th year is it finished and 2 can the final year be paid of quicker if you can get the funds

Foggy

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Post by Foggy » Fri Nov 08, 2019 7:49 am
Yes, as long as there have been no missed payments or unpaid extra income then the IVA will end after the 6th year.

You can pay this early , as a lump sum, but you would have to act fast and it would gain you very little. It takes up to 3 months to process the variation needed to do this and will add around £500 in fees, so the creditors might not like it without good reason.
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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kallis3

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Post by kallis3 » Fri Nov 08, 2019 8:38 am
If there isn't enough equity, why were you required to try and release equity?
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

Foggy

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Post by Foggy » Fri Nov 08, 2019 9:24 am
Good point Kallis -- I missed that !

How much equity was there ?
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

phil282

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Post by phil282 » Fri Nov 08, 2019 9:49 am
there is a clause in the IVA
After 5 years they can try and release any equity in the house
I am not sure if or how much there is .
I just got a phone call saying it was going into the 6th year
they have also received 5k in PPI
I have paid 18k on a 24k debt
I don't even think anything will get wrote off

kallis3

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Post by kallis3 » Fri Nov 08, 2019 10:46 am
If there is less than 5k equity your IVA should finish after five years.
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

kallis3

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Post by kallis3 » Fri Nov 08, 2019 10:49 am
Did you have a valuation done?
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

Azure

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Post by Azure » Fri Nov 08, 2019 12:00 pm
kallis3, I believe the IVA will carry on for a further 12 months if there is no equity to be released.

Azure

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Post by Azure » Fri Nov 08, 2019 12:02 pm
Fri Nov 08, 2019 10:46 amkallis3 wrote:
If there is less than 5k equity your IVA should finish after five years.
kallis3, I believe the IVA will carry on for a further 12 months if there is no equity to be released.

Foggy

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Post by Foggy » Fri Nov 08, 2019 12:11 pm
Fri Nov 08, 2019 12:00 pmAzure wrote:
kallis3, I believe the IVA will carry on for a further 12 months if there is no equity to be released.
Azure, the standard equity release clauses state that if the available equity share is under £5,000 then the property will be disregarded and equity release requirements will be voided --- therefore no extension. The calculations were embedded in annex 6, but have since been manipulated by a couple of the larger firms, due to poor draftsmanship and avericious IPs. But the premise still applies that, however they calculate it, --- the equity has to be in excess of £5k for the clause to be triggered.
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

Azure

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Post by Azure » Fri Nov 08, 2019 12:34 pm
Fri Nov 08, 2019 12:11 pmFoggy wrote:
Fri Nov 08, 2019 12:00 pmAzure wrote:
kallis3, I believe the IVA will carry on for a further 12 months if there is no equity to be released.
Azure, the standard equity release clauses state that if the available equity share is under £5,000 then the property will be disregarded and equity release requirements will be voided --- therefore no extension. The calculations were embedded in annex 6, but have since been manipulated by a couple of the larger firms, due to poor draftsmanship and avericious IPs. But the premise still applies that, however they calculate it, --- the equity has to be in excess of £5k for the clause to be triggered.
I see, thanks for the clarification! I wonder why OP is having to do a sixth year?

phil282

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Post by phil282 » Fri Nov 08, 2019 1:11 pm
This is very confusing.
sorry
if there is not enough equity the IVA should cancel.
Is that correct.
So if there is enough equity why don't they take the money that way rather than the 6th year
does that make sense or am I not understanding this

kallis3

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Post by kallis3 » Fri Nov 08, 2019 1:18 pm
You should have had a valuation done at month 54 and if not enough equity the IVA should finish. If enough equity you should try and remortgage (not really possible these days) or try and do a secured loan which some companies offer.
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

phil282

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Post by phil282 » Fri Nov 08, 2019 1:25 pm
they didn't even do a valuation.
I had to do my final year income and expenditure and send it off
I have portal were I can follow my IVA and payments
it stated my final payment was 24th October 2019
I was waiting for the review to finish.
I then looked on my portal after not hearing anything for a few weeks and now the final payment date is oct 2020

Foggy

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Post by Foggy » Fri Nov 08, 2019 2:20 pm
It sounds like they may have done their own valuation excercise --- did they ask you to supply details of the outstanding balance on the mortgage ? Who is your IVA provider ?
Have they written to you with any details ?
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
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