Hi rachelcn - this is a new one on me and I hope for a lot of people's sake that creditor opinion isn't hardening against 12 month extensions in lieu of equity. Maybe one of the professionals can shed some light on this.
Funnymoney - one of our experts, Mike a.k.a Size5, works for Cleardebt so may be able to look into your case.
Hi Funnymoney,
I could not believe it when I read your thread this evening. I posted a thread on here a couple of weeks ago as my other half and me are in your position exactly. We have been through the same three companies as you have and are coming up to our last 4 months. Our IVA states that we needed to remortgage for £10k each or complete an extra 12 months. When the person managing our IVA contacted us she said that we would not be able to get a mortgage and she would call a creditors meeting to get them to increase our IVA by 24 months not the 12 that we had all agreed to under PB recovery. We said that we are not happy to have to pay a further 24 months and that we would like her to stick to our original arrangement. She said that she wouldnt and if we do'nt agree, she would let our IVA fail. She then contacted us this week and said that she may be able to find somepne to offer us a secured loan.We have looked into this possibiliy ourselves and the best we can find is a £3k loan over 3 years at 59% interest. Obviously we can't commit to such a huge debt for such a small amount. After seeing the advice that you have been given on here, we are going to contact our account manager on Monday and ask to speak to the IP and get them to approach our creditors with a proposal for us to pay for a further 12 months.
I hope that we can get this sorted as we are both completely stressed out and not sleeping. We thought that our money worries were nearly behind us,instead we seem to be back to the same dark place we were in 5 years ago. I really hope that you get things sorted out. We will be rooting for you. Let us know how you get on.
Sally, Gosh Im sorry sounds like your in a worse position than me. I just feel something is not quite right, I know i got myself in to debt, I accept that, and have done for the last 5 years, and beleive me, Lesson learned. But seriously to be failed at this late stage for something completely out of our control, simply has to be deemed as unjust. I know the IP does not work for the creditors or me and they have to remain impartial, but somehow and sometimes it just feels like intentions and integrity doesnt hold a lot of weight anymore. Well Ive put my offer forward, and I got a response just telling me please be aware if they dont accept it your IVA will fail.
WHAT!!! I replied straight away and said surely if they dont accept it, we can discuss it and negotiate? then i get a reply saying yes you will have a few days to come up with an alternative.
I really feel like a criminal at the moment, 5 years, i thought I got to the end, and I am seriously exhausted now, what I thought was the finish line, clearly is not, and I am so scared as to whether i can make the "new" finish line which has not even been set yet!
im worried too about my IVA! Im in my 21st month and i'd rather know now if im going to fail because is it true that after 5 years, if you fail, you are back to square 1? I mean, if I pay £thousands into the IVA and it fails, I owe the creditors the original debt?? All that money and 5 years count for nothing? Surly there must be some sort of law or loophole?? This is not fair and is not right!! You shouldn't feel like the criminal, they are!! And regarding certain maybe not all IP's, i think there in it for the money!! Just like any other company!!
Hey Guys, you really need to go over your proposals and double check what is exactly said about the final years.
Trouble with some of these people in these companys they play on the fact that you are in a bit of a vunerable position,and start being too pushy.
Im sure some one like Melanie Giles will pick up on the thread and give you some sound advice.
As for taking out a secured loan after 5 years in a IVA they must think we've lost our marbles.Yeah getting some equity realeased is going to be nigh on impossable and they know that.
Yeah its right we all try to pay back as much to our creditors as poss, but me still thinks some of these lenders have got their own fingers burnt through their own greed.
Hope all of you get this sorted, im sure you will just stand your ground.
You will be back to square one Lee and you will owe the original debt less what has been paid across. The creditors will start to impose charges and interest again and start harrassing you.
There is nothing you can do about it - you agreed to repay a certain amount of money over the time and if you fail to then the agreement will come to an end.
An IP will charge fees for setting up and supervising your IVA for the whole of the time, if creditors think they are too high they will lower them.
I'm afraid no-one works for nothing these days.
I hope the other two posters both manage to get sorted out and let us know how they get on.
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
Hi Lee - if your iva fails you will owe the original debt minus any dividend paid.
Hi Sally - as your proposal provides for 12 months in lieu of equity you need to ask the IP direct where his/her authority to request a 24 month extension comes from. Unless you have a guaranteed minimum dividend to reach, I don't think there would be such authority to change agreed terms without your consent. After all, if the creditors are happy with the original terms your IP doesn't have cause to change them.
I'm with Baldy on this one! Read the original proposal, all parties to this agreement have to abide by it as it was originally agreed. It seems that sometimes IP's employees give advice on what they think is best and this can be at odds to the actual agreement.
If your proposal stated a 12 month extension in lieu of equity then as long as all other clauses have been abided by your IP company simply cannot force you into a 24 month extension and are wrong to advise you otherwise.
Equity release is one of the biggest areas of concern to people in an IVA. I have been through it and it's a real pain because some proposals are not worded very clearly.
Read your proposal, Are you expected to introduce a fixed sum irrespective of equity or are you expected to introduce a sum to address equity if you have any? If it's a fixed sum regardless of equity then you will need to negotiate. If you are expected to address equity then you need to have equity in the first place, you cannot be expected to address equity you simply do not have.
Another clause that may affect the above is the minimum dividend clause. Are you expected to achieve a minimum dividend to be returned to creditors? Again, read your proposals carefully.
Stick with it and don't be bullied! speak with your IP, they are best placed to advise you on your IVA.
Really glad my equity issue was dealt with at the start of my IVA, extra 6 months in lieu of equity, so iva runs for 66months. It's stressful enough being in an IVA, without the uncertainty surrounding remortgaging. You enter into an IVA to remove all the uncertainty about how to pay your debt, to be left in this situation at the end of an IVA is just awful.
I'm guessing by this thread IVAs made 4-5 years ago some were not clear in terms of equity? My IVA was started sept 2010 was extended to 72months regardless (NR) and if there is equity will put a 12 month extension if I can't get a mortgage. I'm hoping for no property boom!! I hope you all manage to sort your issues our no one wants to fail after 5 years, I would be gutted. I suppose if your proposal was a high % then they would be more willing to accept. My extension put my pence from 18 to 33 in £.
The road is 72months long starting September 2010.
Yes, langerbridge, older (pre-protocol) IVA's were very woolley about the equity issue (some I have heard about were downright dangerous). Fortunately most IP's these days are able to sort out sensible variations to bring them in line (and I get the feeling that creditors are becoming more enlightened too). There, do, however, seem to be a few IP's who are being particularly unhelpful over this ( or, more accurately, probably misguided support staff).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We don't have all the facts but on those we have, I tend to agree with Foggy. I think the support staff are being overzealous in requesting 24mnths in lieu of equity when the proposal specifically ask for 12. The Cleardebt IP is very highly respected so I'm sure it will all be resolved...but nerve-wracking in the meantime.
I hope that Size5 will pick up on this as he works for Cleardebt.
I have met their IP and can confirm that he is highly respected and a nice man.
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
Hello All, Thank you for all you input and advice to my situation. Thought I would pop back and give you the update.
So based on adviced received here, I provided a counter proposal to keep the IVA for a further 12 months with a slight increment to the monthly payment, + a small one of payment at the end of the extended year. And I am pleased to say it was approved! So massive relief!
So thats 11 more months to go again!
Wishing everyone the best of strength to get through this!
FunnyMoney
