Is it right that they can take you into year 7

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sadie.ds

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Post by sadie.ds » Tue Sep 14, 2010 9:00 pm
Is it right that they can take you into a 7th year? As we are not able to release equity in our home. We are with w3 debt solutions?
 
 

Shining

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Post by Shining » Tue Sep 14, 2010 9:00 pm
Hi there, do you have a 6 year arrangement Sadie?
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

carlmcmullen

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Post by carlmcmullen » Tue Sep 14, 2010 9:06 pm
Normally if you are not able to release equity in the final year of your IVA then creditors would expect you to extend your IVA by a further twelve months in liue of this equity. However if there is no equity there based on 85% LTV then there would be no reason for an extension.

So if your IVA was proposed over 60 months they it could be extended to 72 months.

If your IVA's original term was 72 months then yes it could technically be extended by a further twelve months, however as you have already done a 6 year term i suspect creditors would be happy with this.
 
 

MelanieGiles

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Post by MelanieGiles » Tue Sep 14, 2010 10:27 pm
A 7th year is possible if your original duration was for six years with the potential for a final year's worth of payments in lieu of equity.

Was thgis not explained to you initially by your IP?
Regards, Melanie Giles, Insolvency Practitioner
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