My husband I are in an IVA, which is due to end in Oct 2010, so 5mths left to run.
I am just sending back our payslips etc for the last 6mth review and I called my IP to confirm what happens between now & Oct 2010.
I have been dealing with a lady who has now left the company, so I spoke to a different lady who stated that the last payment is due 30th Sept 2010 & then they will issue the completion cert.
When we went into the IVA it was stated that
“The proposal provides for 60 months of payments of ****. It also provides for potential equity in the house to be released at the end of the arrangement”
I know that there is little or NO equity in the property, the estimated value of my property is £105k & mortgage of £43k & 2nd secured loan of £63k. So there willbe nothing for the creditors!.
When I mentioned this to the IP, she stated that we would need to get 2 valuations and then if there were any equity we would have to remortgage or if not equity we would have to extend the IVA for 12mths.
But at no time have we been told that if there were NO equity we would have to extend by 12mths.
I do have all my paperwork & annual repts from the iva. My iva company is Freeman Jones.
In my proposal to the creditors, it states: -
- 5.2.3 – I recognise the creditors will view the equity in our home as a valuable asset. We therefore propose to make a payment in to the arrangement in satisfaction of any claim by the supervisor or creditors to the equity. This payment can be made by a 3rd party, raised by way of a remortgage or by any other means. If necessary we will make the payment by way of continuing instalments after the 5th anniversary of the arrangement and the duration of the arrangement can be extended upto 12mths for this purpose.
- 5.2.4 – The amount of the payment will be for the maximum amount possible of the equity in the property, calculated by reference to a professional valuation carried out no more than 6mths before the calculation is made.
- 5.2.5 -If the property does not acquire any equity at all by the time this calculation is made then the supervisor will be able to release any interest in or claim to any equity in the property by himself or any of the creditors bound by the proposed arrangement upon payments by me of a nominal sum of £150.
She said that she would spk to the Company IP and come back to us either today or tomorrow.
So what are the rules with regard to having no equity in the property?
- If there is no equity do we have to extend by 12mths?
- What does 5.2.5 mean – as it states if no equity is there they can release the interest in my property for a fee of £150?
Sorry this is a long post
Thank you in advance[?]
Hi I'm not sure about the equity clause, I do know a lot of posters are required to pay the extra 12 months in lieu of the equity if they can't remortgage, but not sure what happens if there is no equity. One of our professionals will be along very soon.
An expert will be along to advise soon but hopefully your IP will get back to you quickly.
Bear in mind that when you took your IVA out it would be assumed that you would have equity in your property, and then of course the bottom fell out of the market. Not your fault, but the creditors want their pound of flesh.
My own proposal allows for no equity, and if there is less than £5k then it will conclude after 60 months, otherwise it will continue for a further 12 months if I can't remortgage.
I hope it doesn't come to that, but you do need to speak to your IP to clarify exactly what is happening.
I think it's stupid you have to pay £150 as well!
My IP should be ringing me on Monday after work (i'm a Mortgage underwriter, so it would not go down to well at work). If my emps new about the IVA i would not longer have my job , so only our parents know about the IVA.
We have managed to keep it away from our work & friends which I am very pleased about as we are very proud people.
Many Thanks for your advise, I will post once i've spoken to my IP on Monday evening. My IP is Freeman Jones.
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