Not told about extended 6th year, what can i do?

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mark408
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by mark408 » Sun May 21, 2017 6:17 pm
hi my iva was for 5 years and should of ended in january 2016 the terms and conditions said they would tell me after 54 months if it was to be extended for a 6th year but they never told me till 2 months after my last payment so they have not followed the contract they set out do i still have to pay or can i say they have failed to carry out the contract properly? Thank you.
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Foggy
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by Foggy » Sun May 21, 2017 6:25 pm
Hi -- if you read the proposal clauses on equity release you will see that this is something you agreed to be part of --- they do not have to just "tell you". The IVA is yours, not theirs.

If the IVA failed -- whether it was your fault or you deemed it theirs --- the whole thing will be down the toilet and wasted --- so not something you want to suggest.

Yes, I am afraid you do have to carry on paying -- as long as you agree with the calculations ---- do you agree that there is more then £5,000 equity ?
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mark408
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by mark408 » Sun May 21, 2017 7:26 pm
theres one more question i am getting divorced and will have to give my ex all the equity in the house will i still have to pay the sixth year if theres no equity
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Foggy
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by Foggy » Sun May 21, 2017 7:33 pm
It would depend on how this agreement came about --- if it was a court order then you would be deemed to have no equity and could argue no extension should apply. If it was a voluntary arrangement then the creditors might still deem you to have an equitable interest and hold you to the extension ..... however, the position has already been determined so pending division of the property is no relevent.
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Michael Peoples
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by Michael Peoples » Mon May 22, 2017 11:35 am
If this is being done by consent or court order you should inform the judge of the IVA before you sign anything over. He or she will then take this into account before ratifying any decision.
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Lisa Thomas
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by Lisa Thomas » Tue May 23, 2017 10:25 am
As Foggy says it was your responsibility to deal with the valuation at month 54.

If your equitable share of interest is less than £5k this will be academic and the year extension should not apply.

You will have to declare the IVA to the judge and keep your IP in the loop about this as you are potentially giving away an asset whilst insolvent.
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