Does anyone know how Cleardebt use the equity release clause. Ours has been extended with only 4k equity after 85% LTV they are saying it is anything over 5k at 100% LTV to extend? Ours is a protocol compliant IVA.
This may be something to do with the modifications or an older Protocol case. There have been a number of threads concerning this where Protocol wording can be interpreted in different ways and many people have found themselves with extensions despite perhaps the intention being otherwise.
You need to speak with Cleardebt and ask them why the IVA was extended but it could be because of confusing and conflicting wording in the Protocol terms and conditions. We were advised not to use them due to the conflicts so I cannot say for sure how they work in operation.
Last edited by Michael Peoples on Tue Jul 07, 2015 9:24 am, edited 1 time in total.
Your proposal states that if your equity is less than £5,000 gross then no extension is required. Unfortunately your equity can be deemed to be more than £5,000 gross because this figure can refer to a sale rather than a remortgage at 85% loan to value. This is one of the problems with the old Protocol cases which hopefully were addressed in 2014.
The only people who can give you a definitive answer are Cleardebt so you need to get them to show you how they calculated the equity and which terms/conditions or modifications were applied.
I agree but that would require clarification from creditors and probably anther meeting. Where there is doubt the IP would not have the discretion to intrepret what ought to have been said and to protect themselves would need legal opinion.
As I have said we never used Protocol T&Cs following advice and have always used R3. Therefore I am only interpreting and giving my opinion on the Prototol T&Cs as they seem to have conflicts and holes.
The protocols are badly worded documents developed by a committee coordinated by a government department.
They represent everything that is bad and are case examples of how not to do something.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
The letter of the law often conflicts with the spirit of the law due to the way our laws "evolve", in the same way as the Protocols and various Ts&Cs evolve in the insolvency world.
We British don't tent to scrap and replace -- but potch and add bits here and there (often conflicting bits) --- Actually we are one of the few nations that do that with out architecture too and the only idiots who renovate old French, Spanish and Italian ruins --- anyway, that is by the by
So ... the spirit often requires the intervention of a judge to make it the letter, this doesn't happen a lot in these cases as we, the debtors, have very few resources (money) and the creditors have a little more !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
...and the presumption is that no-one can force an IP to change a decision.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
It just amazes me how all IVA companies are allowed to interpret the same information differently. Surely it should be interpreted the same for every case?
To be fair Dixie the IPs have to be careful not to leave themselves personally liable. If in doubt it is important to seek legal advice and creditor opinion.
I believe that of the smaller firms where the IP's are closer to the initial client.
There is too much coming through around the larger firms linked to whether they even check what staff have done.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
What would happen if your property was worth 150k and your mortgage was for say 139k, you couldn't remortgage because not at 85%, but would the iva still be extended because of being over 5k each?
That depends on how your IVA is worded and the de minimis clause.
GT have been taking an interpretation that says £5k can only be split between the 2 of you.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
