Is there another way to reduce or eliminate further 12 months of payment in iva

[andrew460]

Say I can re-mortgage and I have e.g. £10k in equity. Would they take the full £10k?

[Lisa Thomas]

Yes, if you could remortgage (and depending on your terms). If not and you proposed to sell the property any F&F offer would be based on the number of contributions you have left.

[andrew460]

I've had a F&F offer of £5,453 which I would imagine is 19 months (7 + 12 extended) remaining @ £287/month.

So current options are:

- Pay £5,543 via a 3rd party and the IVA would begin closure in November 18.
- Extend the agreement by 12 months paying an additional £3,444 on top of the £2,009 still to pay. IVA would begin closure in November 19.
- Apply for a re-mortgage and pay them ALL the equity in my house?

Could you tell me if I am correct with these assumptions. it is the equity release which is really confusing me.

Thanks

[Foggy]

- Pay £5,543 via a 3rd party and the IVA would begin closure in November 18.
If you pay this then closure should begin as soon as the payment clears --- but could take 6 months. This offer could be declined by creditors as it would have to be put to the vote.

- Extend the agreement by 12 months paying an additional £3,444 on top of the £2,009 still to pay. IVA would begin closure in November 19.
Correct, although the monthly payments might change if your I&E has changed (you will have another annual review to establish this).

- Apply for a re-mortgage and pay them ALL the equity in my house?
You have to apply for a remortgage anyway and prove that you are unable to get the lending. Chances of acceptance are very slim.

[andrew460]

Thanks for the reply

[Lisa Thomas]

I've had a F&F offer of £5,453 which I would imagine is 19 months (7 + 12 extended) remaining @ £287/month.

So current options are:

- Pay £5,543 via a 3rd party and the IVA would begin closure in November 18.
- Extend the agreement by 12 months paying an additional £3,444 on top of the £2,009 still to pay. IVA would begin closure in November 19.
- Apply for a re-mortgage and pay them ALL the equity in my house?

Could you tell me if I am correct with these assumptions. it is the equity release which is really confusing me.

Thanks

Can you clarify what you mean by you 'I've had a F&F offer of £5,453' please? The offer would come from you, not to you.

Options are:

1. Make an F&F offer based on your remaining contributions to settle the IVA early from 3rd party funds. It would not necessarily need to be for £5,453 but this is your starting point when deciding how much to offer creditors as a full and final. So you could for example offer less.

See my short video on F&Fs here:

https://youtu.be/h4dozq9aGak

Your IVA should finish early but credit rating still likely to be affected until 6 year anniversary has passed.

2. The IVA is extended for 12 months in lieu of the equity being injected and you carry on paying the contributions for 19 months in the normal way.

3. You somehow manage to remortgage (this is highly unlikely to be possible with the IVA in place) and your share of equity is paid in. How this is calculated will depend on your terms.

4. You may have another option of obtaining a secured loan - again it will depend on your terms whether this has to be considered.

[andrew460]

I had an email form Credit Fix saying 'if you wish to make a full and final offer to your creditors the amount is £5,453, including the 12 months extension'.

It seems the equity release is worst case, followed by the 12 month extension and the best is to get a 3rd party to pay it off.

[Lisa Thomas]

Credit Fix can only tel you what your remaining contributions are or give you that figure as a starting point.

It is up to YOU to decide how much you wish to offer creditors and up to the CREDITORS to vote on it.

Creditfix simply Supervise...

Seems to me you get a third party lump sum gift for maybe £5k or carry on as you were.

Is there any particular reason you want to finish quickly rather than carry on for the 19 months?

[andrew460]

Just want it completed as soon as possible. The £5,453 is what's left at this point on the agreement (19 months @ £287) so Credit Fix are probably just sating that.

I'll probably just let it continue on the £287 direct debit then see if a family member can help out towards Christmas and make an offer then around the £3,700 mark as I know no one has the full £5,453 available now.

I have heard of people offering lower amounts for the F&F payment, but sounds a bit dodgy if the creditors reject it.

[Lisa Thomas]

If creditors reject a F&F there is always the ability to increase, alternatively you just carry on as you were.

[andrew460]

Thanks Lisa