You need to speak to your own prospective IP as some clauses differ, as well as some interpretations of the same clause ! Aperture tend to use a creditors friendly interpretation and most others use the commonly understood version --- who are you talking to at the moment ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Credit fix I am speaking to and the IP there said I currently have negative equity. But I want closure on the making payments. I have been told that if accepted I can pay £90 a month for 6 years. Its the remortgage part that I'm worried about. Is there a catch that I should be aware off? I don't understand the LTV 85%?
I also feel pressurised to go ahead as I am having texts to sign the form promptly.
First of all -- do not cave to pressure ! It is vital that you understand everything and are happy. CF are not the beat at communication so it might take a little perseverance !
The usual term for an IVA is 5 years, which could be tweaked by creditors at the meeting to 6 --- it is not common practice for an IP to go in at 6 from the start !!
Equity release is looked at 6 months before the end and is usually worked out like this:
Market value x 85% = 85% LTV
Less any outstanding mortgages and secured charges = equity available
(if co - owned they will refer to your share -- usually half)
If equity is less than £5000, nothing happens. If it is more than £5000 you will need to try to release equity. If unable to release equity the IVA will be extended by 12 months.
You cannot rely on the fact that you are in negative equity now -- it is irrelevant ..... and they should not be brushing it aside !!! Things can change by the time the equity is looked at.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have been told that I have negative equity therefor I won't need to remortgage due to the £5000 I am single but the house is jointly owned. I just want closure obviously from another professional. Am I right in saying that as long as I make the £90 a month for the 6 years I will be debt free and won't have to give over any equity of my house?
I am just worried that this may not be the right protocol for me but I want the support.
Thu Apr 25, 2019 5:50 pmmelissa977 wrote:
I have been told that I have negative equity therefor I won't need to remortgage due to the £5000 I am single but the house is jointly owned. I just want closure obviously from another professional. Am I right in saying that as long as I make the £90 a month for the 6 years I will be debt free and won't have to give over any equity of my house?
I am just worried that this may not be the right protocol for me but I want the support.
No, as it stands this is not correct (unless CF are using modified terms -- which have got them into strife before). If your equity increases over the years you will be required to attempt to release equity, if it exceeds £5000. Also, as well as the £90 per month (which can be increased if your income increases) you will be required to pay over a share (typically half) of overtime income or bonus payments, all of any windfalls over £500, such as lottery wins, insurance compensations, and inheritances.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sorting it out independently could leave you open to collection / enforcement, whilst under an IVA you have protection from such matters.
Whether an IVA is the best solution will depend on the whole picture to which we are not privvy.
I would, however, suggest that you chat to one or two more providers to compare advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Speak to a few companies before making any commitments.
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
I agree about not being pressurised. There always 2 factors to consider - is the IVA the best option available to you, and if it is - who is the best company to run it for you. Definitely worth chatting to a couple of companies and making sure you understand all pros/cons.
Having dealt with Creditfix for an IVA which is still in conflict after 10 years, i would advise against using this company.
I have also been advised after talking to solicitors that they have had many litigation cases against them. I have made a formal complaint against the supervisor with the IPA, which found the supervisor of the IVA to have breached the fundamental principle of professional competence and due care.
Also any agreements that you do sign, you may be asked to sign a RX1 land registry form to affect a restriction on the property. if it states anywhere on the proposal, he following..... that standard terms & conditions for individual voluntary arrangements form part of the proposal be very wary. this has a clause that states.....
Your Proposal incorporated the R3 Standard Conditions (annexed) to provide a procedural framework for your Arrangement. I respectfully refer to you to the following clauses in the R3 Conditions;
28(2) [Assets in the possession of the Supervisor]
Property constituting an asset of the Arrangement in the possession, custody or control of the Supervisor shall be held by the Supervisor upon trust for the purposes of the Arrangement.
28(3) [Trusts to survive termination of Arrangement]
The trusts referred to in Subparagraphs (1) and (2) shall not come to an end upon termination of the Arrangement. Instead those assets shall be got in and realised by the Supervisor, and any proceeds applied and distributed in accordance with the terms of the Arrangement.
Notwithstanding the termination of the Arrangement following the meeting of creditors held on ----------------, the property is subject to the arrangement trust and the Supervisor of the arrangement, who is now acting as the Trustee of the trust which has survived termination of the Arrangement, is entitled to the restriction. In the circumstances, the restriction cannot be removed from the property as the Arrangement trust has not been satisfied.
Personally, i would also be inclined to look at bankruptcy if you don't hold assets as they would possibly exclude the property.
its not as frightening as it may seem and 12 months and you are discharged. albeit you may have a 3 year payment plan, which may be more affordable than the iva, without the threat of breaches, creditors alteration and termination which would more likely lead to bankruptcy any way.
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
