Hi last July I made what I believed was my last IVA payment, they asked for a mortgage redemption certificate which I gave them in December 2020, I have just received an email today stating that I have equity in my house therefore apparently I have commence payments in January, this will be the 8th year of being financially trapped, can I please get some advice! Thank you, I am worried about my mental health if this happens
Equity release should have been investigated around the end of the originally agreed term, so around the prior Christmas. For whatever reason it wasn't and they have now realised this and are carrying out what you agreed to initially, albeit late.
You could argue that they have been negligent in not picking this up before --- they will counter argue that it is your IVA and you agreed to carry out the equity release exercise at the agreed time, which you failed to chase after providing the requested redemption statement.
As annoying as this is the exercise has to be carried out and, as it seems, as you are unable to release equity, the IVA has to have 12 extra payments made, as per the agreed terms. You could make a formal complaint about their tardiness, which you could then escalate to their regulatory body, who might issue a fine. However, you will get no compensation, nor will you be absolved of these extra 12 months --- and all of that will only add to your stress levels !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk