Releasing funds in lieu of equity ?

[don]

Hi

Year 5 of the IVA was 15th August 2011. We have a condition that says we have to release xx in lieu of equity or extend the IVA for a further 12 months if no funds are available.
The wording is unclear, it says a further 12 payments of x per month to release x but my IP says that we have to make 12 payments based on month 60 amount which is more than the monthly amount set out in the Order. Additionally, we have just received a PPI refund which has gone to the IP. this is dated September 2011 and after the end of year 5. Do they take that money and pay it into our IVA to distribute to creditors even though year 6 is a set amount to release funds in lieu of equity?

[kallis3]

Hi Don,

Your payments were never set in stone as if your income increased then the payments probably would which is obviously what has happened.

The PPI is classed as a windfall and so will go towards your IVA and your creditors will get a better dividend.

You will always owe the full amount to your creditors until the completion of the IVA so unless you are going to pay back 100p in the pound then it looks as though the IVA will continue on for the final year.

[don]

Hi thanks for your reply. I find everything so confusing and didnt realise until looking on here that there are so many variations to terms of an IVA. So many people seem to have different terms. Oh well - 5 years down and 11 more payments left to go. What a long hard struggle but we are getting there:)

[kallis3]

Each IVA is just that - individual and although the protocols which were introduced in 2008 and 2010 did standardise things to a certain extent, we still all have different things in our IVA's.