I have a mortgage on my property of 90k, the property is worth 180K, an IVA has been approved and payments are due to be paid at 500 per month for the next 5 years.. On completion of the IVA I must re-mortgage my home to pay a lump sum of 70K at this point I will be 63 and the 90K mortgage would have reduced to 74K. my property will then have a total mortgage of 144K, I don't think this is likely based on my age.
A
Is this a common approach to an IVA, paying a lump sum at the end of the 5 years even though my age is against me and is unlikely to be able to obtain a re-mortgage at this age.
Hi - the equity clause is pretty standard now. If you cannot remortgage, you will be asked for an additional 12 payments in lieu of equity. Alternatively, you could seek to offer a one off payment IVA by releasing equity now; taking away the suspense over the next five years.
You are highly unlikely to be able to remortgage when you need to given your age and the fact that nobody is able to release any funds at the moment.
You will continue on for another 12 months in lieu of that 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
You need to speak to your Supervisor in order to confirm precisely what is required as per the terms of your proposals.
If it's not a protocol IVA then it may be necessary to convene a further meeting of creditors to request that they agree to accept an additional 12 months voluntary contributions in lieu of equity in property.
Regards
Andrew Bowers
Licensed Insolvency Practitoner
