My first annual review paperwork has arrived, the I&E has been prepopulated with figures supplied at the onset of the IVA and only a few figures have changed, mainly increase in the cost of living,council tax and car insurance. I had a £54 monthly inflation pay rise in April but that has been offset with the increases and am actually £40 a month worse off. Will my payments come down or will they ask me to make savings in other areas? Also there is a clause in the proposal to say my house will be valued in month 54 to see if there is equity. The equity is approx £30k but my ex is entitled to half of that so only £15k to me. If I cant remortgage (which is likely) do I have to pay creditors payments to the effect of £15k? My proposal was 38p and have to pay back £25k instead of the original £39k. Thanks for any advice.
Regarding the review put in your new expenditure and income and see what they say.
Regarding equity normally it will say in your paperwork what will happen but anything over 5k equity is expected to be released,if you cannot do this(which basically nobody can these days),you will most likely have to pay 12 extra monthly payments(doesnt have to add up to the equity figure).
People should be careful where they have excessive equity as creditors could still force a sale of the house to release the equity.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi Paul, thanks for the response, I didn't realise that they could force a sale!! was always told that my house was safe. My ex won't even ask me to sell as our 18yr old daughter still lives at home but is due to go to Uni next September. Can they really force me to sell?? I would never get another mortgage and would have to rent for the rest of my life. Really, really worried now. Are you sure??
It should only be your half of the equity and I agree with nepensioner - I think you will be asked to carry on.
Check what it says in your paperwork, your IVA should be protocol compliant and these normally include the extra 12 months.
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
I would speak with your Ip for case specific advice, but the usual is 12 months extra payment in lieu of equity. All the best and for the review put down exactly what is spent and all should be fine. IP's do have the discretion to reduce payment by up to 15% without referring to creditors but again speak with your IP in the first instance x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Tarasue your house is safe. A forced sale is rare but is a possibility for all in an IVA. Personally I hope we go into recession next quarter & stat until end of 2012 then I won't have to go into a seventh year in 2016.
Whether you need to make concessions in other areas is upto IP. I got to increase outgoings with income decreasing!
The road is 72months long starting September 2010.
Sorry if I caused you worry there Tarasue,I wasnt being specific,I just meant that anyone entering an IVA nowadays with large amounts of equity may find creditors want to get at it,rather than just accept 12 months extra payments.
Apologies again for causing you distress.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
