Ok, Creditfix review once again - very little has changed from last year but apparently I have £64 disposable income - if only!
I have requested the expenditure they have worked this out from cause it’s certainly not what I submitted!
Secondly, can someone please translate the following. I have read it and re-read it but still don’t really understand it.
(I get the first bit about remortgaging but this bit talks about not being able to remortgage but then refers to remortgaging) Where the debtor is unable to obtain a re-mortgage, the IVA should instead be extended by up to 12 months with the aggregate sum paid to the Supervisor being limited to 85% of the value of the debtor’s interest in the property. The amount by which the additional secured borrowings increase shall not exceed 50% of the monthly contribution at the time the mortgage offer is obtained. Where it is demonstrated at the review date that the debtor’s net worth net of remortgage costs in the home is under £5,000 (gross) it is considered de minimis and does not have to be released, and there will be no adjustment to the IVA term. The costs of re-mortgaging to release equity shall be deducted from the mortgage proceeds and the monthly payments deducted from the contribution. If the increased cost in the mortgage means that dividends to creditors fall below £50 per month after fees, monthly payments are stopped
The remortgage clause kicks in at around month 54. Basically you value the house and get a redemption statement on the mortgage --- if there is more than £5k equity available you need to try to remortgage / raise a secured loan to release equity. The payments for this remortgage / loan cannot be more than half, each month, of what the IVA payment is.
If you cannot release equity the IVA gets extended by 12 payments.
If there is less than £5k equity available the whole thing gets forgotten and the IVA ends, as already agreed, with no extension.
If there is, say, £20k equity ( so they would be looking at getting 85% -- £17k) and the legal fees or early redemption fees for arranging the remortgage cost £2000, then those fees come out of the equity, so they would say there was, actually, £15k equity to grab.
Clear as mud --- better explained over a sociallyt distanced pint !!
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