Still debating whether to start an IVA or continue in a DMP.Bit confused about the equity release on the house ie if there thousands of pounds of equity does this mean I would have to remortgage in the 4th year? Surely that would mean having an additional secured loan on top of the IVA which would be unaffordable!Also who would lend to me while in an IVA? Confused!!
Also would I be able to keep any overtime,bonuses etc?
Like most advice posted here, best bet is to contact an IVA specialist and discuss your individual circumstances with them. I started in a DMP then soon realised that an 11 year repayment plan was never going to work so spoke to 2 firms recommended on here, finally settling for Melanie Giles.
It is a real minefield and like yourself I was looking for quick answers to my questions, however I soon realised that it just wasn't black and white and I needed professional help.
Last edited by Dougie on Fri Jul 30, 2010 1:20 pm, edited 1 time in total.
IVA Accepted - Sep 2009
F&F Accepted - Oct 2014
CC Received - Jul 2015
Forgot to say that for overtime/bonuses you can keep an amount up to a certain percentage above your normal income then after that you have to pay 50% of the remainder over.
IVA Accepted - Sep 2009
F&F Accepted - Oct 2014
CC Received - Jul 2015
The equity situation is relatively simple and your chosen IP will explain it in detail. However, irrespective of how much equity in your property you will not be expected to increase your mortgage payments by more than 50% of what you were paying into the IVA. This avoids taking on borrowings that are not affordable.
As to extra income, you keep the first 10% extra in your salary and divide the rest with your IVA. For example, if your basic is £1500 per month and you get a bonus/overtime of £300 you pay £75 to the IVA. You keep the first £150 i.e 10% of £1500 and divide the rest. This provides a good incentive to earn more money.
Contact an insolvency firm for some free advice and all your questions can be answered.
The equity release provisions are in reality simpler to comprehend than they first appear to be. In reality, unless the mortgage marketplace vastly changes over the next five years, it will still be impossible to get mortgages for people in IVAs - in which case the worst case scenario is that you will pay a further years' contributions.
