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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