My current outstanding debt is £29599.22. I am in month 35. My current payments are £1297 which means the debt is paid at month 58 if the payment is not reduced (not including any bonuses and IP costs). If I choose not to remortgage will I still have to make payments beyond the 5 years. In the agreement the creditors agreed to pay the IP costs and the minimum dividend was far less than I will have paid (it is current 57% and the agreement was 49%).
Thanks
If there is equity you will have to release it or extend the IVA unless you have repaid your debts in full. You cannot just refuse to remortgage if this is a condition of the IVA as this would be a serious breach and could lead to your bankruptcy. It will really come down to the amount of equity at the time.
Hi
You owe the full amount of your debts, less payments made by your IP, up until your IVA is concluded. Even though your creditors have agreed to an initial 49p dividend they are within their rights to collect upto the full 100p if your circumstances dictate that
Regards
thanks for the replies.
I think my real question is that I will have paid 100% of my original debt by month 58, without a remortgage. To be honest it is unlikely that there is any substantial equity in my property. If there isn't do I still have to continue beyond 5 years and pay the IP costs myself, even thought the creditors agreed to pay them out of the premiums?
If there is no equity then the arrangement will likely cease at the end of year 5.
Check your original proposal. It could be that if there is equity that you cannot release a further 12 months contributions will be required.
You may well have paid back what you owed by month 58 but whilst in IVA you have had the benefit of zero interest for creditors, so even paying an additional year would be less than 5 or 6 years worth of added interest.
7 year IVA completed in December 2016 - there is light at the end of that tunnel
