Hi nearly done my 5 years and I am to pay for another 12 months instead of equity from home.I don't mind the extra 12 months..but read that if creditors in the paperwork at the meeting could say no to this and make me go into bankruptcy..can this be done as I thought as long as I kept payments and kept to the agreement this would be what would happen.
It's highly unlikely that any of your creditors will want to see you bankrupt at this late stage, Fallenhero, but why does your IP even need to call a meeting of creditors. Is this a specific requirement under the terms of your IVA?
I just read when my IVA was taken out...there information about what happens about any equity but nothing about extending for another 12 months incase I can not get any equity from home.Also there is a bankrupt cause..The creditors could express their intent that the Debtor be made bankrupt..i may be reading wrong..I cant believe that after five years they could do that..
I doubt they will - but the terms of your own IVA specify the terms of the contract specific to you, so the only people who can really give you complete clarification are those in the firm who are responsible for your case. Seek independent legal advice if you need a second opinion.
I have the same problem fallenhero, there is nothing in my contract that mentions an extra 12 months. I was told verbally that if I can not raise equity than it will be extended for another year but of course that means nothing now. Which is why in another post I have urged people to read their proposals very carefully.
My IP is putting this to my creditors but apparently this could take 3 months. I feel this is as bad as when I started my IVA worrying whether this will be accepted. I have been told to carry on making payments. Mine mentions bankruptcy as well the reason I entered into an IVA was to avoid this.
In my experience, the vast majority of variaitons to IVAs are accepted Country Girl, so do try and stop worrying about this until the creditors meeting has been called. Is there any way you could persuade your IP to escalate the calling of the meeting, given that you are concerned about the outcome?
Country Girl...I know what you mean about worried and was told the same if I couldn't get the equity I would be given another 12 months.I cant see the creditors making me go bankrupt.How unfair would that be to take the money for 5 years and barely live then decide nahh we make you go bankrupt anyway..i will be kicking up a fuss if they did..
A question, but how do you raise equity from a home if your insolvent unless you sell up? I thought a mortgage company will not lend you anything against your home whilst in such a position no matter what the equity?
Oh right cheers Mel. I guess that's a separate loan to the mortgage? How does that bypass the credit checks as I thought any credit would be subject to these?
It all depends on loan to value ratios. If this fits, and the lender is happy with the security cover, then they may be less interested in the loan to value issue.
I don't know why it is going to take 3 months Melanie. I was really surprized when I received the letter stating that I have arranged a telephone appointment with the person who is dealing with it and will ask if it is really going to take that long.
