Im considering going on an IVA but Im worried about the part where at the end of your 5 Year IVA you may have to release equity of your home. How is that gonna be possible if nobody will give you credit? And what so far have people experience with regards this matter? Also, my husband will not be included in my IVA application, how is he going to be affected seeing as we have a joint current act and mortgage?
Hi. As things stand at the moment, and providing your company use the protocol clauses the likelyhood is that you will not be able to release any equity, if there is any, and will, therefore add another 12 months to the IVA instead. If there is no, or little, equity, then the house will be excluded at that point and the IVA will finish as arranged. The devil IS in the detail and it will depend upon how your chosen IP treats this very important clause.
Might I suggest you pop over to www.iva.com and have a word with a few of the companies represented there, for specific, free, advice ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You also need to check if your IVA shows a guaranteed dividend payable or just an estimate, if its guaranteed then your IVA may run longer than an additional 12 months if you cannot get a re mortgage..
As you have not yet entered into an IVA, guaranteed minimum dividends will probably not apply to you, as creditors rarely ask for this these days. The IVA Protocol makes specific provisions for equity release which are pretty standard these days, and it would be well to assume that your IVA may have to run over six years rather than five - which I think may be better than having to take out more secured lending at the end of the IVA term, which may last for several years thereafter.
