Can i ignore equity clause in IVA?

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Mark.29
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by Mark.29 » Mon May 08, 2017 5:24 pm
End of year 6 what happens if i ignore equity clause? Will it definitely fail?
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luluj
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by luluj » Mon May 08, 2017 5:26 pm
The iva has been based on equity being released therefore to ignore it could easily bring failure to the iva.
Why would you want to face failure gaving reached this stage of your iva ?
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darcus30
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by darcus30 » Mon May 08, 2017 5:32 pm
Because i simply cant do another year. 6yrs and all we were holding onto was the end.
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Foggy
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by Foggy » Mon May 08, 2017 5:44 pm
You have done 6 years and cannot face another --it is tough I know. But ... the alternative is to flush those 6 years down the pan !!!

First, do you have equity to be addressed ? You might not even trigger the clause -- but this WILL have to be investigated.

If you DO trigger the clause --- could you get a lump sum from friends and family to cover the 12 month extension in a full and final offer ?
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darcus30
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by darcus30 » Mon May 08, 2017 6:01 pm
I think tbere is some equity. Sadly my family are not in a position to help out.
Ill send it in and see what happens my gripe is that when i first took it out im sure i was told 6 yrs and that would be it. Im hoping that these calls are recorded.
Thanks guys for your input
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Foggy
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by Foggy » Mon May 08, 2017 6:50 pm
darcus30 wrote:
I think tbere is some equity. Sadly my family are not in a position to help out.
Ill send it in and see what happens my gripe is that when i first took it out im sure i was told 6 yrs and that would be it. Im hoping that these calls are recorded.
Thanks guys for your input


Calls are quite often recorded --- but, regardless of what might have been said, the clause is in your proposal and you signed it, having read, understood and agreed to it.

Check the valuation, method they use to calculate equity and get a redemption figure from your lender. If you can prove your share of the equity is less that £5000, assuming you have the standard clauses, the clause won't be triggered anyway.
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luluj
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by luluj » Mon May 08, 2017 7:44 pm
Great advice from foggy - dont let it fail now. You have come so far and are in touching distance of a debt free life. For the sake of another 12 payments stay focused !
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Michael Peoples
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by Michael Peoples » Tue May 09, 2017 8:12 am
The arrangement must have been extended to six years at the original meeting otherwise perhaps your IVA will close. You need clarification from your IP.
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Lisa Thomas
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by Lisa Thomas » Tue May 09, 2017 11:30 am
Get a valuation to establish the equity point. You might be worrying over nothing.

Also I don't recommend you 'ignore it'. That will result in the failure of your IVA, potential Bankruptcy and potential repossession and sale of the property (on a worst case scenario).
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