Is it correct that I will have to release equity to settle the IVA ?

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kev760
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by kev760 » Thu Apr 27, 2017 4:08 am
Evening
I have a current IVA with an agreed amount with creditors of 21. 000.
Up to date I have paid into the IVA 27400.
i have just received a letter from the IVA company saying bthat I will have to release equity in my property to settle the IVA.. s I've already paid in more than the agreed amount , is this correct ?
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Foggy
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by Foggy » Thu Apr 27, 2017 6:48 am
During an IVA you will always owe the full original debt, plus fees and possible statutory interest. The IVA will continue until such time as this figure is met, or it comes to term, whichever is first.
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kallis3
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by kallis3 » Thu Apr 27, 2017 7:23 am
Hi,

Do you have any equity in your property? You are unlikely to be able to remortgage but your company may offer you a secured loan. Check your paperwork and see what it says.
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Lisa Thomas
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by Lisa Thomas » Thu Apr 27, 2017 9:07 am
If you have the 'standard' equity clause, your equitable interest will need to be realised, somehow, if your equitable interest is over £5k.

The standard way is to extend your IVA by another year's worth of contributions as you almost definitely won't be able to remortgage.

It's possible to also take on a secured loan instead but this needs careful consideration and is not often the best way to manage it.
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