Will my IVA be extended to 7th year because of equity?

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alisa

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Post by alisa » Fri Apr 13, 2018 4:35 am
Hi I entered into IVA IN 2013 and I was told that the IVA will be over 6 yrs cos due to equity in my property but it’s high chance you will struggle to remortgage due to poor credit..so don’t worry about it . You will be debt free when I make my last payment .. That was what I was told. Now I am coming to an end of the IVA plan and I receive a letter to get a valuation report so that they can see if there is any chance of equity available for the creditors.. then I have to apply for remortgage and if I’m unable to get the remortgage so does it mean that I have to pay another 12 months of payments or does the Iva plan is closed?..

Foggy

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Post by Foggy » Fri Apr 13, 2018 6:43 am
alisa wrote:
Hi I entered into IVA IN 2013 and I was told that the IVA will be over 6 yrs cos due to equity in my property but it’s high chance you will struggle to remortgage due to poor credit..so don’t worry about it . You will be debt free when I make my last payment .. That was what I was told. Now I am coming to an end of the IVA plan and I receive a letter to get a valuation report so that they can see if there is any chance of equity available for the creditors.. then I have to apply for remortgage and if I’m unable to get the remortgage so does it mean that I have to pay another 12 months of payments or does the Iva plan is closed?..
What does the term say on your proposal and chairman's report ? From the way you describe it above your had a 5 year term, which could be extended for equity. But, in some cases the creditors alter this to a 6 year term, which can also be extended.

All will be in your paperwork.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Lisa Thomas

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Post by Lisa Thomas » Fri Apr 13, 2018 8:18 am
Most 'standard' IVAs last 5 years increasing to 6 if the 'standard' equity clause is included in the terms.

Some IVAs actually have a based of 6 years with the year extension taking it to 7. This is because some creditors like NRAM insist on 6 year IVA rather than the standard 5.

Look at your proposals and modifications for the answer.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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