Hello Everyone, just wondered if I could ask your opinion on the following. I was due to complete my IVA in Feb 2012. Just before Christmas I received a letter from my IVA company asking me to extend my payments for a further 12 months. My total debt was £53000 and I have been paying £520 per month. I have never missed a payment sometimes this has been very hard. I do own my own property with my partner and there is no equity I have been advised that due to the shortfall and no equity in the property this is why I have been asked to extend the payments. After reading some other questions I seem to have been paying a lot each month. Can my IVA be extended, will I be able to reduce the payments , what will happen if I don't extend? I thought there was light at the end of the tunnel
Hi and welcome to the forum. This is very common and most people are asked to extend in lieu of equity. I went through the very same process. It was a shock to me at the time, and something I had overlooked in the process. However, paying for a further year, is a lot less than taking out a re-mortgage for any equity. If there was equity at the time of taking out the IVA, this is why you have been asked to extend. With regard to your monthly payment, the agreement is to pay whatever disposable income you have, regardless of how much others are paying. The idea is to pay back as much of the full amount as possible. When we started our IVA we were paying £500 per month when we finished 6 years later we had been paying over £900 for the last 18 months. If others are paying a lot less than you, then this is due to them not having as much disposable income as yourself. Remember you still owe the full amount until such time as your IVA finishes. Providing you complete the extended 12 months with no hiccup, you will not be asked to extend any more.... this is now your light at the end of the tunnel. Hope this helps to clarify the situation for you.
Hi Sally, welcome. The answer I think will lie in your original proposal. Was there a minimum dividend mentioned, suspect if there is no equity, the extension may be because of that.
im due to finish this year ( im in year 6 ) and some companies appear to take 4-6 months to finalise the completion certificate, yet you got your certificate in what looks like to be no more thanperhaps 6 weeks
good luck ( im counting down !! )
12 months to go
Last payment made April 2012
Certificate received 1st Nov 2012
There is a vast difference these days with a lot of companies with the timeline of completion letters going out.
Some of it is to do with VAT and some to do with PPI claims.
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
Sally, as nepensioner says you need to look at the specific wording in your original proposal as older IVA agreements looked for a minimum dividend and extensions to cover equity release. 2-3 years ago new protocol arrangements came into effect to standardise arrangements so both I.P's and creditors new where they stood. My proposal mentions that if there is no equity i.e less than £5000 after removal and remortgage costs then no equity or extension to the term has to be made. Otherwise an extension of 12 months in lieue of that equity is the norm.
I know I'll end up paying the extra as we do have more than enough equity.
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
Yes Jan, but at least you can plan for that - well over half way now and it's worth it in the end as it's a heck of better situation than paying your own equity out!.
This seems to one of the most asked questions that worries members on this forum.
Last edited by winter_blues on Sun Jan 08, 2012 11:21 am, edited 1 time in total.
There are times I would like to be able to free up some of the equity so I could finish sooner!!
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
Yep, I have just read my proposal prior to my reply above and it also mentions introducing a third part sum as an option to cover the equity release clause. Cross that bridge when I get there !
Mine will be sometime next year but I can't see anyone lending to me as we already have three secured loans on the house (original mortgage, top up when we were desperate and a normal secured loan).
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
Is it better to give a full and final offer before the end of the IVA so as to avoid any equity release clauses being activated or an extra 12 months of payments?
Unless you can match your original dividend then not really.
Your creditors will want back as much as they can.
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 am a third of the way through a 6 year IVA and with the payments I still need to make I will be paying back another £16K approx. But my IVA could be extended by another 12 months if I cannot re-mortage part of the equity that will be in my house towards the end of the term.
So if I need to pay £16K over the next 4 years what would be a fair offer?
Any suggestions?
Would £12K swing it?
