Hello All-I have an Iva with creditfix for a total of just over £24k which started June 2014. A year was added on halfway through due to some other debtor coming out of the woodwork (I’m currently disputing this as I think the debt has been added twice)-but irrespective of that, I asked Creditfix for an idea of how much I still owe and received this reply this week: that till date, you have already paid £21,358.92 towards your IVA. Therefore, the remaining amount left in order for you to complete your arrangement is of, £3051.08.
I pay £355 per month. My question is, will I have to try and release equity on my property by remortgaging at some point before June 2020? It seems to me that by June I will have repaid beyond the remainder that I owe? But don’t know if the equity release is done automatically because I will have more than £5k equity in my house to recoup some more of the debts for the creditors? (Am awaiting a reply from Creditfix to help me undercut but so far no response)
It all depends on what the figures being bandied about actually represent.
This £24k --- is that the total debt you had before the IVA, or is it the estimated payment you would make over the term of the IVA ?
Assuming we are talking amount to pay in -- that £3k left represents the sort of figure to offer for a F&F early settlement. But excluding any possible equity extension.
The IVA will not end until the agreed payments have all been made or you pay in the full original debt, plus fees and possible statutory interest. I would imagine that the equity release clause will be triggered to go towards covering this shortfall.
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