I wasnt aware of this...

[SometimesTina]

When I took out the IVA, (2.5 years ago) I didn't realise the 'lump sum' payable after 4 years was not a fixed sum. So in effect, if the house has increased in value more than originally thought, then they could take more as a lump sum.

This then, surerly, makes an early settlement figure harder to calculate?

BTW I am thinking of applying to pay it off early, so joined the forum for advice.

If I was to remortgage now, I could raise about the same amount as what they would get over the course of the IVA, including the(agreed) four year lump sum figure.

Are they likely to accept this proposal?

I take it fees will have to be added also?

Thanks for your time

Tina

[MelanieGiles]

Hi Tina and welcome to the forum

I think that you will struggle with an offer that only gives creditors what they would have received over the course of the IVA, when they also have the benefit of a potential equity release during the final year.

It is worth discussing with your IP, and also you need to explore whether you could raise funding, as mortgages in IVAs are becoming increasingly difficult to find.

[SometimesTina]

Thanks Melanie, so am I correct in saying that the equity release could be far greater than the igure originally quoted in the IVA contract?

[MelanieGiles]

If your property has increased in value that is sadly the case.

[joh71262]

But what if not all the creditors have lodged a claim ? Do you still have to pay them ?

[MelanieGiles]

Your IP will be chasing the creditors to ensure that they do claim, but in the unlikely event that one or more do not then they will be excluded from receiving a dividend payment.