Hi I am in the process of doing an IVA and I have been looking through some of the posts on here; people seem to be paying back around 39p - 45p in the £ and I believe that our offer will be nearer 34p in the £ with the IP fees being in this amount too. Therefore creditors getting less than the 34p; would this be a reasonable offer?
Hi there, all IVA's are individual and based on disposable income, so long as your best offer is on the table to the creditors then it should be fine, an IP will usually only put the offer forward if they're confident of acceptance. xx
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Thank you I feel better for hearing that Melanie. . All documents are with Tamsyn now so hopefully will be moving onto the proposal team soon. Just want to say that everyone of your staff and yourself are so helpful;it is so nice and comforting at these worrying times. Our main creditor is the Halifax; are they usually understanding in an IVA situation? Also what happens if a creditor doesn't vote either way before or in the creditors meeting?
That is good to hear Sally, and rest assured that Halifax are a very fair creditor to work with. If a creditor does not vote at the meeting, then they are bound by the decisions of those who do. Halifax will generally always vote - and in my experience so long as the best offer is being made always in favour.
Thanks Melanie; I look forward to speaking to you.At present we have no equity ih the house due to mortgage and a secured loan; would we have the clause in our proposal that if there is still no equity we have to pay for a further 12 months? If there is some equity but we cannot remortgage to take this cash out what would happen then?
Your IVA will only be extended by the additional year, if you have equity based on an 85% loan to value calculation.
For example if your property is worth £110,000 and you have a mortgage of £80,000 - the equity calculation would be based on 85% at £93,500 - and therefore leaving £13,500 to either raise or contribute to via additional repayments.
If you have no equity, then there would be nothing to raise.
I understand Melanie. If the calculation is as you have said in year four and we have to raise £13,500 but cannot obtain a remortgage would we pay our IVA payment at the same rate say £400 a month for a further 12 months and then the IVA would be completed even though it would not be the full £13,500? Or would we be expected to sell the house to raise the full £13,500?
If there is still no equity in year 4/5 is the IVA complete after 5 years or do you have to pay for a further 12 months?