I am afraid, in earlier proposals, that in many cases equity was specified and therefore payable regardless of the situation at the end of the IVA. This was done, believe it or not, because, up to the peak in 2007 the property market was rapidly rising and the expectation was that if equity was, say £6000 at the start of the IVA, it could well have been £10 or 12,000 at the end. So proposals fixed the figures in order to protect the debtor from having to pay over too much.
Unfortunately the bubble burst and the market went into a decline, but nobody could see this coming (or, at least, ignored it).
In some cases IP's have put forward variations to bring the older proposals in line with the more modern, Protocol Compliant, ones. In theese, generally but not invariably, equity is only set towards the end of the IVA. If it is less than £5000 is is disregarded, and if more, but, as is usually the case, cannot be realised, 12 months are added to the term instead. In many cases a 12 month extension works out financially better for the debtor.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
