hi just wondering about the fourth year clause if there isnt enough equity in the fourth year can they make you look into it again in the fifth and in our case becuse its extended,the sixth too are do you only try the once thanks
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
As it just says 'in the fourth year', I can't see that they can make you do it again.
Mine states that if I can't get a remortgage, I just continue for another 12 months.
Ones prior to this year probably don't even have the extension clause on there.
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
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
Ours (with DFD)also had the 4th year clause, i asked for details about it. I was told i would have to try and remortgage with my existing mortgage company and one other high street mortgage company. If i couldn't get a remortgage then the IVA would continue for the 5th year only. and that would be that... I was told i wouldn't be forced into any sub prime deals.
As it was i didnt have to go that far down the road.
we already extended for 12 months so we cant do that i will read it also does the fourth year clause me in the middle of the fourth year or at the end is that a daft question.
This is the relevant extract from my Chairman's report:
An open market valuation of the property must be provided to the supervisor in the 4th year of
the Arrangement together with a mortgage redemption figure.
"The debtor must remortgage to realise the maximum amount of his share of the equity in the
property from a re-mortgage, up to a maximum of 85% loan to value based on affordability.
The debtor must forward details of the re-mortgageoffer to the supervisor and written
confirmation from the mortgage broker of the best offer availiable.
Should the debtor be unable to realise his share of the equity in the property by way of a remortgage,
12 additional monthly contributions shall be made, providing that the supervisor has
first written to creditors to ensure that there are no objections."
To me, the fourth year means as soon as 3 years has passed, i.e. the beginning of the fourth year but I will clarify that with my IP closer to the time as I am only 18 months into my IVA. With regard to trying to remortgage more than once if the first attempt fails, the final sentence is unclear as I need the creditors agreement to extend for a further 12 months. Maybe if they disagree to a 12 month extension, they will ask for another attempt at remortgaging before the end of the 5 year IVA period.
Some of the older IVA's did conclude at 5 years even if you couldn't remortgage, it's only the ones this year that have the extra 12 months added on.
You will usually find as well that if remortgage payments come to more than 50% of your IVA payments, you can't do it.
It's not a daft question Andrea. It should tell you on your report, mine is in month 54 I think.
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
There are many versions of this variation clause in circulation, and therefore to avoid confusion or ambiguity, can I suggest that all posters who are concerned about what they will be required to do only seek advice from their own IP or a lawyer who can examine the paperwork concerned firsthand.
Whilst this forum is a great place to come for help and support, it cannot substitute the very specialist advice to be found from one who is fully conversant with your case - and to rely on comment from this forum either from a professional expert or regular poster could potentially be dangerous.
From what you have quoted the Chairman's report states IN THE FOURTH YEAR. I would get a copy of the Modifications and see what that sates. It looks though that your arrangement will continue for a further 12 months if no re-mortgage is available. So oibtain offers/valuations towards the end of your 4th year or during your fourth year as property prices are still falling.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
