I am in the last year of IVA.

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philip170298

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Post by philip170298 » Wed May 12, 2010 4:35 pm
I am in the last year of IVA. I am quite behind on payments due to a period of redundancy and various car issues which I intend to solve by extending the agreement if needed. My question is there is a baloon payment of £20,000 on the house - trouble is it is shared ownership so no equity. What is the position on this? I have paid in excess of the original required cash amount due to pay rise and have paid £32000 of the original total sum of £44000 -(the £44000 inludes baloon)
 
 

Shining

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Post by Shining » Wed May 12, 2010 7:18 pm
Hi Philip, sorry I can't help with this but I'll bump it back up for a professional opinion. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Michael Peoples

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Post by Michael Peoples » Thu May 13, 2010 9:35 am
I am not sure what you mean by a balloon payment on a house. Do you mean you have to raise that amonut of equity to complete your IVA?
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

philip1702

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Post by philip1702 » Thu May 13, 2010 10:06 am
Yes the original agreement is something like £24,000 cash + £20,000 from the house, although I have now paid £35,000 cash by the end of the IVA
 
 

Michael Peoples

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Post by Michael Peoples » Thu May 13, 2010 10:15 am
It is almost impossible to raise funds on a shared ownership property without actually buying out the housing association's[HA] share and sometimes this is not allowed anyway so I do not see how you were ever going to raise £20,000. You should have an urgent talk to your IP and provide an up to date valuation and mortgage statement. The IP should know what share is owned by the HA so can easily calculate your equity. If there is none I would be looking to have the IVA closed down after the arrears extension has been completed.

This will require a variation particularly if creditors were offered a guaranteed minimum dividend but there is no way you can raise £20k.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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plasticdaft

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Post by plasticdaft » Thu May 13, 2010 10:18 am
Why were creditors ever offered equity in a shared ownership property??
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

L-E-E

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Post by L-E-E » Thu May 13, 2010 10:24 am
Good advice from Michael. Speak to your IP on the points he mentioned then let us know how you get on.

Lee
 
 

kallis3

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Post by kallis3 » Thu May 13, 2010 10:27 am
Good luck Philip - hope you get it sorted.
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
 
 

philip1702

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Post by philip1702 » Thu May 13, 2010 11:14 am
It is almost impossible to raise funds on a shared ownership property without actually buying out the housing association's[HA] share

Which is what I thought - it would cost £30000 to buy the HA share! The guy from Grant Thornton who did the proposal was aware of part ownership. I will get in touch with them and see what they say
 
 

Michael Peoples

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Post by Michael Peoples » Thu May 13, 2010 11:41 am
Good luck Phillip and let us know what they say.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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