I will pay only for four months into the 6th year?

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john604
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by john604 » Sat Jul 22, 2017 6:49 pm
Hi there..I'm hoping one of the experts can help. I'm in an IVA that reaches the 5th anniversary in Feb 2018. At that time the payments I would have made will be around £5k short of the total amount owed to creditors. Paying roughly £1250 per month since day one, does that mean I will pay only for four months into the 6th year or will I have to continue paying for the full 12 months (I do have equity in my property). Many thanks
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Foggy
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by Foggy » Sat Jul 22, 2017 6:52 pm
Hi. During an IVA you always owe the full origianl debt, plus fees and possible statutory interest -- the IVA will only end early when and if that total is met.

Sometimes the creditors can be petitioned and agree to forgive the statutory interest -- check your proposal -- on occasion it is already excluded in the terms.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 24, 2017 8:19 am
If you have 'standard' terms in your IVA then if your equitable interest in the property is worth over £5k then the clause will kick in an the 12 moth extension will likely apply.

The key here is to getting a current valuation and see if you can wriggle your share to under £5k...
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