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

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alisa
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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?..
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Foggy
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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.
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Lisa Thomas
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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.
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