I have just been reading about the pitfalls

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elizabeth.vy
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by elizabeth.vy » Tue Jan 19, 2010 5:40 pm
I have just been reading about the pitfalls of the IVA and how some people are still struggling, we are with Payplan on a debt managment plan and are thinking of changing it to an IVA they have told me the amount i need to pay each month and that there will be a charge on my house. I asked how it would be repaid in the last year and the answer was in any number of ways and they could not tell me because it would depend on the situation at the time, can anyone else help here?

 

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happy buddha
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by happy buddha » Tue Jan 19, 2010 5:44 pm
hi elizabeth,in my iva it states that i'm to raise a certain amount by remortgage in the last year and if i cant do that then the iva will continue for an extra year until completion.

 

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Adam Davies
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by Adam Davies » Tue Jan 19, 2010 5:46 pm
Hi and welcome to the forum
Usually you will be asked to remortgage in the final year and release some equity. If you are unable to remortgage then your IVA may be extended by one year.
There is not an actual charge put on your house but a restriction registered with land registery notifying your IP if you sell the proprty
Regards

 

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size5
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by size5 » Tue Jan 19, 2010 7:22 pm
I hope I have misunderstood, but an IVA should NEVER be about "how much you have to pay" but purely and simply about affordability. Do not be guided by any "target figures" either one way or the other.

It has been stressed on here numerous times that that is a recipe for disatser.

That aside, I am off out to watch City and Utd and I may catch up with you later.

Good luck and regards.
Last edited by size5 on Tue Jan 19, 2010 7:23 pm, edited 1 time in total.

 

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MRBLUESKY
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by MRBLUESKY » Tue Jan 19, 2010 7:33 pm
who do you want to win mike.

 

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Sinking Fast
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by Sinking Fast » Tue Jan 19, 2010 7:37 pm
I should imagine with Size 5 being a true Manc he will be a RED through and through[:D]

 

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Sinking Fast
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by Sinking Fast » Tue Jan 19, 2010 7:39 pm
Can I ask, and sorry to hijack this thread, But I was of the understanding an IVA is for 5 years; yet I see and read more and more IVA's are running on for 6 years.

Surely this will deter more and more people, and steer them towards BR....

Andy Davie wrote:


Hi and welcome to the forum
Usually you will be asked to remortgage in the final year and release some equity. If you are unable to remortgage then your IVA may be extended by one year.
There is not an actual charge put on your house but a restriction registered with land registery notifying your IP if you sell the proprty
Regards

Last edited by Sinking Fast on Tue Jan 19, 2010 7:44 pm, edited 1 time in total.

 

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MRBLUESKY
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by MRBLUESKY » Tue Jan 19, 2010 7:52 pm
hi sinking fast i fancy city tonight,sorry mike if i,m right.i suspect that iva,s in some circumstances are being extended to 6 years to recieve bigger dividends from homeowners with equity.if your a tennent like i am the creditors are happy with five years, better with %30 divi with iva,than %7 assuming they get 3 year repayment order over three years,in bankruptcy.
Last edited by MRBLUESKY on Tue Jan 19, 2010 7:54 pm, edited 1 time in total.

 

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Skippy
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by Skippy » Tue Jan 19, 2010 8:07 pm
I agree with Mike (a fellow Red!), an IVA should be based on what you can afford, not what you are told to pay.

 

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Shining
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by Shining » Tue Jan 19, 2010 9:25 pm
Hi Elizabeth and welcome to the forum, if you're thinking of changing to an IVA from a DMP you can get a list of companies as I don't think you have to go with Payplan at www.iva.com talk to 2 or 3 of these and get their opinions, the IP's who post on forum also come highly recommended and they can be contacted via the experts link.

I totally agree that an IVA is based on your income and expenditure not what you're told to pay to get IVA acceptance.
Last edited by Shining on Tue Jan 19, 2010 9:26 pm, edited 1 time in total.

 

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size5
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by size5 » Wed Jan 20, 2010 12:06 am
Ignoring the football (Mike Dean 2, United 1) and ignoring Carlos " I won't celebrate if I score" Tevez, sinking fast makes a really good point, and he is right. Why would anyone in their right mind, at least on a purely financial basis, choose a (possible) 6 year plan, at most likely a higher contribution, over a 3 year plan?

I don't actually have the answer, other than, in my experience anyway, the vast majority of people who find themselves in this situation, are honest folk who want to meet their creditors halfway. Accordingly, they will bend over backwards to do what they can, when in reality it should be the other way round.

I often imagine what creditors response would be if all IP's steered everyone towards BR for, say, 6 months and proposed no IVA's at all. My guess is that the guidelines that I work with would be updated instantly, instead of in arrears and nothing since 2008, and silly modifications would also disappear.

One can but hope.

Regards.

 

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MelanieGiles
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by MelanieGiles » Wed Jan 20, 2010 2:57 am
I don't understand why your payments would be any different in an IVA than in your current DMP, and to advise you that an IVA causes a charge to be put on your property is incorrect, and unprofessional. Perhaps you ought to look outside your current firm for advice as to all of the options available to you.

 

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Shining
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by Shining » Wed Jan 20, 2010 7:34 am
Kallis went from DMP to IVA I do believe and her payments were lowered if I remember correctly, I'm sure Kallis will be along later to comment on whether I've remembered this information correctly.

Do take alternative advice Elizabeth and I hope you find the solution for yourself very soon.

 

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kallis3
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by kallis3 » Wed Jan 20, 2010 8:00 am
You're right Lesley, we did go from a DMP to an IVA, and our payments actually went down about £30 a month. However, the DMP wasn't with Payplan, it's the IVA that is so don't know if that would make a difference.

We have to try and remortgage but are unlikely to be able to, mostly due to our ages so we will continue for another 12 months which is much better than the length of time it would have taken us to pay off a DMP.

I think Northern Rock sometimes insist on an extra year.

I wonder if Elizabeth has missunderstood the charge on the house? Could she be referring to the restriction which the IP places on it so that you can't sell it without them knowing.
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