I’m going into year 5 of a joint IVA. 60000 was the debt.

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by Danny18 » Sun Jan 14, 2018 3:50 pm
I’m going into year 5 of a joint IVA. 60000 was the debt at the beginning of the IVA. We have a mortgage with plenty of equity in the house. What’s the maximum I need to borrow? We pay 370 per month to IVA. Now will we need to pay more than the 60 k back in total? thanks in advance
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by kallis3 » Sun Jan 14, 2018 4:00 pm

You will be in an interlocking IVA. Chances are you will continue on for a further 12 months as you are unlikely to be able to remortgage. You will never pay back more than your original debt plus fees and possible statutory interest.
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by Foggy » Sun Jan 14, 2018 4:16 pm
Doubtful that you would be able to remortgage, but, if you did, it would be for 85% of the equity up to the figure Kallis mentions ( 100% debt, plus fees and possible statutory interest, less payments already made ) ---- the amount would also be limited by the fact that the repayment can only add 50% of your IVA payment to your current mortgage repayment and cannot extend the term of the mortgage. However, the most likely outcome will be a 12 month extension.
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by Lisa Thomas » Mon Jan 15, 2018 9:52 am
Also creditors will take into account what dividend they would get if you went Bankrupt and if you have 'plenty of equity in the house' this could be a significant sum, depending on the figures so the IVA has to be at least as, or more attractive, than Bankruptcy.

Also in Bankruptcy if the house was repossessed and sold they would likely get their dividends back within say 18 months compared to 6 years based on the terms you have referred to.
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