My IVA has been extended for another year

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kelly705
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by kelly705 » Sat Aug 26, 2017 7:34 pm
My IVA has been extended for another year due to us not being able to get the equity in the house. After paying this for a year can it be extended over and over.. the IP keep amending my expenditure to lower amounts even though it was previously increased (mortgage) after i sent in proof. I'm very unhappy with them
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Foggy
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by Foggy » Sat Aug 26, 2017 7:37 pm
The 12 month extension in lieu of equity is a one off -- they cannot extend again for that reason, nor can they ask about equity release again.
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kelly705
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by kelly705 » Sat Aug 26, 2017 8:56 pm
Foggy wrote:
The 12 month extension in lieu of equity is a one off -- they cannot extend again for that reason, nor can they ask about equity release again.

Thank you for your speedy response clarifying that. Are they able to extend again for another reason? It was due to finish this month. Thank you
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Foggy
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by Foggy » Sun Aug 27, 2017 8:37 am
kelly705 wrote:
Foggy wrote:
The 12 month extension in lieu of equity is a one off -- they cannot extend again for that reason, nor can they ask about equity release again.

Thank you for your speedy response clarifying that. Are they able to extend again for another reason? It was due to finish this month. Thank you



They can only extend within the agreed terms, one being, as you know, equity. They can also extend to add on missed payments or to catch up any under payments or arrears, which you would, presumably, know existed. Other than that they could extend, by agreement, to cater for any emergency situations (which don't often happen) such as a previously unknown creditor coming out of the woodwork and potentially reducing the dividend too far.
Finally, they could also extend the administration period at the end (they are usually allowed up to 6 months after your final payment to tie things up and issue the completion certificate). This could increase the time you are actually in the IVA, but not the number of payments. If they wish to extend this period they have to give you notice.
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Imhotep
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by Imhotep » Mon Aug 28, 2017 2:14 pm
Not in lieu of equity. Could be worse, you could have had an inflated mortgage/secured loan for the remainder of the mortgage if you had been able to release equity.

If you have taken any payment breaks these will also be added to the end of the term.
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kallis3
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by kallis3 » Mon Aug 28, 2017 3:41 pm
Regarding equity release - there were certain conditions - payments could not be more than 50% of your IVA payments.

As far as I am aware, you do not have to take a secured loan, and I, for one would never have done so.
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kelly705
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by kelly705 » Fri Nov 24, 2017 9:28 am
Foggy wrote:
The 12 month extension in lieu of equity is a one off -- they cannot extend again for that reason, nor can they ask about equity release again.


Thank you for your reply Foggy. I’ve read that they can extend again into a 7th year, is thus true? Could this then go on and on? I’m wondering if it would be better for me to just go bankrupt. Thank you
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Foggy
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by Foggy » Fri Nov 24, 2017 9:34 am
kelly705 wrote:
Foggy wrote:
The 12 month extension in lieu of equity is a one off -- they cannot extend again for that reason, nor can they ask about equity release again.


Thank you for your reply Foggy. I’ve read that they can extend again into a 7th year, is thus true? Could this then go on and on? I’m wondering if it would be better for me to just go bankrupt. Thank you


If you had a 5 year IVA agreed by creditors they can extend to 6 years in lieu of equity. If it was a 6 year IVA agreed ( sometimes creditors extend at the outset -- especially Northern Rock) they can still add that equity extension on, making it 7 years. If they have already extended in lieu of equity (usually around 6 months before the end date) they cannot extend again for that reason -- they have already had a bite at that cherry!.
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kelly705
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by kelly705 » Fri Nov 24, 2017 9:46 am
I feel they are going to extend over and over again. Not for equity but anything else they can think of.

Foggy wrote:
kelly705 wrote:
Foggy wrote:
The 12 month extension in lieu of equity is a one off -- they cannot extend again for that reason, nor can they ask about equity release again.


Thank you for your reply Foggy. I’ve read that they can extend again into a 7th year, is thus true? Could this then go on and on? I’m wondering if it would be better for me to just go bankrupt. Thank you


If you had a 5 year IVA agreed by creditors they can extend to 6 years in lieu of equity. If it was a 6 year IVA agreed ( sometimes creditors extend at the outset -- especially Northern Rock) they can still add that equity extension on, making it 7 years. If they have already extended in lieu of equity (usually around 6 months before the end date) they cannot extend again for that reason -- they have already had a bite at that cherry!.
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Foggy
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by Foggy » Fri Nov 24, 2017 9:55 am
kelly705 wrote:
I feel they are going to extend over and over again. Not for equity but anything else they can think of.

Foggy wrote:
kelly705 wrote:

Thank you for your reply Foggy. I’ve read that they can extend again into a 7th year, is thus true? Could this then go on and on? I’m wondering if it would be better for me to just go bankrupt. Thank you


If you had a 5 year IVA agreed by creditors they can extend to 6 years in lieu of equity. If it was a 6 year IVA agreed ( sometimes creditors extend at the outset -- especially Northern Rock) they can still add that equity extension on, making it 7 years. If they have already extended in lieu of equity (usually around 6 months before the end date) they cannot extend again for that reason -- they have already had a bite at that cherry!.


They can't. apart from the reasons I mentioned earlier. They are as bound by the terms of the agreement as you are.
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kelly705
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by kelly705 » Fri Nov 24, 2017 10:04 am
Am I able to challenge what they are saying should be my contribution amount. They are literally squeezing us for everything.

kelly705 wrote:
I feel they are going to extend over and over again. Not for equity but anything else they can think of.

Foggy wrote:
kelly705 wrote:

Thank you for your reply Foggy. I’ve read that they can extend again into a 7th year, is thus true? Could this then go on and on? I’m wondering if it would be better for me to just go bankrupt. Thank you


If you had a 5 year IVA agreed by creditors they can extend to 6 years in lieu of equity. If it was a 6 year IVA agreed ( sometimes creditors extend at the outset -- especially Northern Rock) they can still add that equity extension on, making it 7 years. If they have already extended in lieu of equity (usually around 6 months before the end date) they cannot extend again for that reason -- they have already had a bite at that cherry!.
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Foggy
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by Foggy » Fri Nov 24, 2017 10:45 am
You can challenge anything and everything -- this is your IVA, not theirs ! First, read up on the proposal and what you have agreed -- then you are on firmer ground to tell them what they are doing is rubbish (assuming it is ! ). Unfortunately many aspects are down to IP discretion --- which varies a lot from firm to firm, so a lot will depend on who you are with and their own policies --- but they still have to work within the agreed terms.
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kelly705
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by kelly705 » Fri Nov 24, 2017 10:46 am
I really appreciate your time thank you

Foggy wrote:
You can challenge anything and everything -- this is your IVA, not theirs ! First, read up on the proposal and what you have agreed -- then you are on firmer ground to tell them what they are doing is rubbish (assuming it is ! ). Unfortunately many aspects are down to IP discretion --- which varies a lot from firm to firm, so a lot will depend on who you are with and their own policies --- but they still have to work within the agreed terms.
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