I'm in the final year of my IVA (it was started 30th March 2006) but as yet have had no request from IVA company to remortgage house (which we were told would happen). Obviously, due to the current financial climate, if anything, the value of the house has dropped since the IVA was started just over 4 years ago (so is this the reason why?). I'm now really worried because my partner and i have stuck it out for all this time, and now we finally see some light at the end of the tunnel, we're really concerned about what will happen next. What are the next stages- will we receive a letter or something at the end saying we are finally out of this and that will be the end of it after the 5 years? Or could there still be some nasty, unexpected surprises out there for us on the horizon? What will happen?
I would give your IP a call and ask what is to happen. It may well be that the creditors will ask for a further 12 months payments in lieu of any equity if you can't remortgage.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
Give your IP a call as Jan says and ask them what they would like you to do. Chances are that you will extend your IVA by a year if you can't release equity however it will depend on the wording of your chairmans report following your original creditors meeting.
Regards
i too have the 4th year claus about re-mortgage
mine says i have to release my half of any equity up to 85% ltv
it also says that if the equity is £5000 or less then it will be classed as de-minus and this will not constitute a failure of aggreement.
if i cannot release any equity then a further 12 months will be required instead.
can someone please explain if the de-minus bit means that if my property is in negative equity or only has up to £5000 then my iva will finnish after 60 months and i only have to pay a further 12 months if its above this?
also how do you calculate the 85% ltv(in simple terms please[:D])
cc received 6th January 2014 now upwards and onwards
If the value of your house is $100,000, then 85% LTV would be £85,000 ie 85% of the value.
In other words with this example you would be able to keep £15,000 equity.
It all depends on your current outstanding mortgage too as if that were already £85,000 you wouldn't be able to raise any more in the terms of the IVA.
If it were £70,000 you would be expected to raise £7.5k.....assuming you could find a lender who would lend to you and that the increase in your mortgage payment wasn't more than 50% of your IVA payment.
I hope I haven't confused you more!
7 year IVA completed in December 2016 - there is light at the end of that tunnel
I think de-minimus means you will pay another year, just means that you won't be expected to try and re-mortgage and will not constitute failure of the IVA as a result of not remortgaging.
7 year IVA completed in December 2016 - there is light at the end of that tunnel
I think that if it is below £5000 then your IVA will conclude after five years. That's what it says in our proposal.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The deminimus limit in IVA protocol based IVAs is £5k, which means that if the equity to be raised is less than this sum no further payments will be required.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
