Frustratingly why is it when an IVA company states you have 5 years and are debt free that more often than not that isnt the case? Im with GT and am paying a total of £36,960. GT take £9,730 in fees so im left with a figure of £27,230 to distribute. My creditors agreed to this amount but because there is a surplus of £7,140 GT state my former matimonial home will need to be remortgaged of i pay another year to make up this figure - so therefore the IVA is 6 years isnt it??? im paying back 79p in the £. My case is complex as the house is a divorce case and ex still living in it with help of benefits..zero equity and v high mortgage at interst only..Just got county judge to agree a court order stating house must be sold after my IVA finishes in Nov 2014 - not sure how GT will take this though as my share of any profits (doubt there will be any) is 20%...Surely if are taking almost 10k in fees and my creditors agreed to the dividend of 79p in the £ its harsh to do this kind of extending thing..i know you can make the creditors a cash offer at settlement but still..sorry just rambling here but i find it frustrating
Our IVA company explained that its possible for an IVA to run for up to 6 years depending on circumstances. Ours will have been running for 5 and half year when we finish.
I am not too clued up on remortgaging in an IVA as we rent, but I am positive that all of this should have been included in the agreement that was drawn up before the IVA officially began. x
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Hi and thanks for your comment
Yes the house equity clause was included in my agreement but because of my divorce Court Order now agreed, it means i doubt i will obtain any equity on the house sale. 20% share of nothing is of course nothing. I do wonder actually if GT will be annoyed about this court order being agreed but it is part of my divorce
Regards
geoffr wrote:
Hi and thanks for your comment
Yes the house equity clause was included in my agreement but because of my divorce Court Order now agreed, it means i doubt i will obtain any equity on the house sale. 20% share of nothing is of course nothing. I do wonder actually if GT will be annoyed about this court order being agreed but it is part of my divorce
Regards
Is was made clear to me if I cant re-mortgage at end of 5 yrs to release any equity I may have then (its still 4 yrs 9 months away) I would have to pay for another year
As this is so complex it is probably better to speak to your IP about it.
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In defence of your IP, it can often be difficult to predict the likely outcome of an IVA set to run over five years, which is actually a long time - especially if creditors make stipulations about minimum dividends.
These days, IVAs are far more flexible than they were five years ago - IPs and creditors have learned from mistakes made in the past and this has resulted in the IVA protocol. I appreciate that this does not necessarily help you, Geoff, but work with your IP firm as they have a good reputation and do look after their clients well.
My understanding is that if there is more than 5k equity but the LTV is 85% or less, and that the re-payments are not more than half the iva payments then you have to try to re-mortgage. If you can't get it re-mortgaged then you have to pay up to an extra year.
The other side of this is that if there is no equity then of course there is nothing to re-mortgage and therefore the IVA concludes at 60 months.
lol. Sorry Mel, LOL, I'm obsessive when it comes to needing information, and usually I ask the same question a few times before my brain clicks on the answer and once I've got it, it stays there. wish I knew the answers to my own questions though. LOL, poor Helen got an ear warming from my Qs earlier today. No one can answer them yet though really.
Musst admit though the mortgage one is something that will occupy our minds in 4and half yrs time.
I'm a mortgage broker and also in an IVA. You need to know that there is only one lender who would consider a re-mortgage to anyone in an IVA - their rates start at 13.75%!!!!! How is anyone going to release equity, if you have any, and not get into further difficulties because of high interest rates?[:(] Sorry for being so negative but it is a huge worry
Hi Rachy,
I dont see the former matrimonial home as having equity anyway to be honest. I know its impossible to predict but my ex wife is trying to go interest only atm, and the house has a large mortgage (we only bought it in 2007), plus it has a secured loan over it. If she gets Northern Rock to agree to an interest only then i just cannot see any equity being there, but we shall see.
In my case i dont want there to be any equity being truthful, and have told my IVA company many times i will not be re-mortgaging with my ex wife. Im hoping it sells and breaks even. I expect i will have to pay another year into my IVA instead - that is the only thing that angers me in some ways. 79p in the £, and even though i would of paid back the entire debt by 5 years in some ways (if you less GT 10k fees) i cannot see any other outcome other than me having to pay another year.
i guess at least its not over the long term is it.over in 1 year.we had no equity so had no choice but to go for one more year .we have 11 payments to go
