told I will have to do 2+ years

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Allan.8

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Post by Allan.8 » Wed Sep 15, 2010 8:25 am
Hi, I am in the 4th year of an IVA and can't re-mortgage? Any suggestions? I am told I will have to do a 2+ years from now not just 1 more year.

If I got a relative to pay the IVA off, when could I borrow again to pat them back? 1 year? or less?
 
 

MelanieGiles

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Post by MelanieGiles » Wed Sep 15, 2010 10:07 am
Hi Allan and welcome to the forum

What justification have you been given for needing to pay for two further years? Did you have a minimum dividend requirement under the terms of your proposal, or was a guaranteed sum offered from the equity in your home? Either way I would have thought a variation of terms was now appropriate for you.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Sensible77

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Post by Sensible77 » Wed Sep 15, 2010 3:36 pm
That is interesting. My Chairman's Report states: "Creditors will receive a minimum dividend of 30 pence in the pound, failure to pay the minimum dividend will constitute a default."
Based on my current payments, I will pay 48p in the pound, but if I can't remortgage, my monthly payments alone will pay a dividend of 30.21p in the pound. Could this mean that if I can't remortgage I may not be required to pay an additional 12 months, as I will have achieved more than the minimum dividend anyway?
 
 

Michael Peoples

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Post by Michael Peoples » Wed Sep 15, 2010 4:55 pm
That seems reasonable if there is no equity. However, if there is equity and you just cannot release it an extension would be appropriate to address this irrespective of your dividend.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Sensible77

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Post by Sensible77 » Wed Sep 15, 2010 5:54 pm
Thanks, Michael.

What concerns me is that as my equity is roughly 2 years payments my creditors would want a two year extension rather than one year. I appreciate that my IVA company can’t say anything for sure until they approach my creditors but it’s the not knowing that’s so frustrating.
 
 

kallis3

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Post by kallis3 » Wed Sep 15, 2010 6:05 pm
Our IVA equity release is a lot more than than an extra 12 months extra payments, but that is what is written into our IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Sensible77

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Post by Sensible77 » Wed Sep 15, 2010 8:01 pm
Hi, Kallis.

My Chairman’s Report does state an extra 12 months payments if I can’t release the equity but then it says this is subject to creditor’s having no objections. Being a pessimist, I can’t help thinking what they could want instead!
 
 

Allan.8

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Post by Allan.8 » Sat Sep 18, 2010 4:08 pm
Hi Melanie,

Yes, the minimum dividend is 28 pence in the pound.

I have asked that the terms be varied as you suggested.

Thanks Allan
========================================
MelanieGiles wrote:

Hi Allan and welcome to the forum

What justification have you been given for needing to pay for two further years? Did you have a minimum dividend requirement under the terms of your proposal, or was a guaranteed sum offered from the equity in your home? Either way I would have thought a variation of terms was now appropriate for you.
 
 

plasticdaft

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Post by plasticdaft » Sat Sep 18, 2010 8:12 pm
Allan8 will this extensiuon take you up to 72 months of payments? Its pretty standrad to have a 12 month extension in lieu of equity on top of a 5 year IVA.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
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