A bit of background: I entered an IVA with the IVA Advice Co. (PJG Recovery) in Aug 2013. Due to having a part interest in a difficult to sell foreign property, it was agreed that the IVA period would be 6 years instead of the more usual 5. A year or so after it started, the IVA was transferred to Creditfix. All has gone pretty well although their timings re annual reviews etc have been a bit erratic. I was told by the original IVA company that I would be contacted 6 months before the end of the 6 year period with a view to assessing equity in our home and possibly remortgaging to put funds into the IVA (I have over £5k in equity). I’ve therefore been merrily waiting on some communication from Creditfix re that.
At the end of May I received a letter with a ‘notice of extension’ stating that the IVA has been extended by 6 months as my Supervisor requires more time to conduct a review of my property. It appears from searching the small print in my original documentation that I should have provided a valuation myself 6 months before the end of the 6 years. I hadn’t realised this and, having originally been told someone would be in touch re this, I’ve just, perhaps stupidly, waited and got on with earning a living. I’ve just had a formal valuation completed and I’m a bit unsure how to handle things going forward.
My questions therefore are…
1. Is it normal, and proper, for an IVA to be summarily extended for 6 months like this with no other contact prior to doing this?
2. My initial 6 year period ends in July this year. Surely it doesn’t take 6 months to decide on an equity figure available and explore whether a remortgage is possible or if another 12 months will be payable?
3. If another 12 months payments are needed in lieu of equity release, is this 6 month extension deemed part of the 12 months or has the whole IVA now been extended to potentially 7.5 years?
4. As my last payment of the initial 6 year term is due in next month, do I still need to keep paying the monthly payments after that while my Supervisor gets around to ‘reviewing my property’?
This has been a long, hard journey and I’m not sure how best to respond to this letter. I’d really appreciate any advice.
1. Is it normal, and proper, for an IVA to be summarily extended for 6 months like this with no other contact prior to doing this?
There are standard provisions for extensions to term built into most agreements, although these refer to extensions of the admin period, not to additional payments.
2. My initial 6 year period ends in July this year. Surely it doesn’t take 6 months to decide on an equity figure available and explore whether a remortgage is possible or if another 12 months will be payable?
CF are not known for their speed in these matters. Many agreements are worded so that it is YOU that needs to do the legwork, obtain valuations and refusals to remortgage, so the speed should be dictated by you.
3. If another 12 months payments are needed in lieu of equity release, is this 6 month extension deemed part of the 12 months or has the whole IVA now been extended to potentially 7.5 years?
As mentioned above, they cannot arbitrarily add payments. If you make these payments they should count towards the extension period.
4. As my last payment of the initial 6 year term is due in next month, do I still need to keep paying the monthly payments after that while my Supervisor gets around to ‘reviewing my property’?
Push CF for clarification on the whole process ( and it might take some pushing!). You should not stop paying until advised that you are able to do so.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Technically the responsibility for releasing equity from the property is yours, although most people don't realise this and of course I appreciate this whole experience will be new to you. It doesn't necessarily mean that the IVA will continue for an additional 6 months, it just allow your IP to deal with it. As it will probably be my firm conducting and independent review I can see if it's possible to bring your review forward. If you do release equity, the amount you offer will be offered in 'Full and Final settlement' and therefore the sooner it is addressed the better.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Many thanks Shaun. I tried to contact CF yesterday but there was no-one from the 'asset team' who could talk to me. They plan to call me back this morning. Hopefully.
Hi steve
I was in similar boat last year with CF and their delays sorting my equity release.
select had been fab and we had a figure available to end our iva but CF changed paperwork and kept being delayed.
I had paid my 60 contracted payments and basically told them I would not make anymore payments into my IVA until they had sorted it out.
I didnt see why I should make what I saw as ‘extra payments’ when they may stick have accepted the equity release amount therefore getting more.
I realsise some will say I owe full
amount til repaid but only what was agreed....id done my side of the agreement (60 payments AND had released equity) The delay was their doig and I wasnt going to continue paying as they could delay delay delay and id keep on paying.
I wrote to them (politely) and explained I wasnt going to pay anymore into IVA u til there was a decision.
If the equity wasnt accepted Id then start paying the 12 months extension....but only once a decision was made. CF agreed to this amd said I didnt need to make any further contributions until creditors had made decision about equity release figure.
It was agreed, funds paid across and Certficicate received. It took manys months of delays, cancelled meetings, irate phone calls and detailed emails but got there in the emd.
Just letting you know they have been known to agree to hold payments until decision is made. Sometimes have to be firm eith them! I have email address for Assets team if helpful. Might be able to find a name too although they come amd go so quick at CF chamces are no longer employed there 12 months on!
Many thanks for your response. It's great to hear how things have gone for others. I'm glad your case was completed OK in the end. Sounds like it was a bit of a battle.
I've now been in touch with their assets team and, so far, they've been really helpful so fingers crossed.
Thanks again for telling your story. Living in an IVA is a bit weird and hearing from folk who've been through it and out the other end is great.
