Have searched the forums but could not find an exact answer, so apologies if I am repeating a question.
I am now in my final year of my IVA actually only 1 more month to go.
In my contract I was meant to have remortgaged to release some equity in year 4, but I was never contacted or asked. only a few days ago have been asked about this and was told it would be highly unlikely that anyone would remortgage for me based on the current economic situation, so I asked what my options are:
The response is we can see if we can arrange for you to get a secured loan.
My response was, I have spent 5 years living hand to mouth, to become debt free, the very last thing I want to do is get a loan out now. and pay for another god knows how many years. But clearly as my contract states I am obligated to do something, I cannot ask family or friends so that is not an option.
However, the IP did say that I could make an offer, and they could take that to the creditors meeting and see if that is accepted.
I need to pay 10k from my equity, what would be a good offer? 5k? I wish i even had that? it would take me another year and half living on the bread line to save that. Is this any other options? and is this really the case now that I cant get a remortgage?
hi funny money i would ask that your payments already made be accepted as a conclusion of your iva.if declined at least you have a starting point to negotiate.
Funnymoney well done for getting this far,myself and lesley will help you where we can,but low dividends to creditors is certainly not a laughing matter,this site is monitored by proffessional people and will not tolerate debt arrangements taken light hearted.
MRBLUESKY wrote:
Funnymoney well done for getting this far,myself and lesley will help you where we can,but low dividends to creditors is certainly not a laughing matter,this site is monitored by proffessional people and will not tolerate debt arrangements taken light hearted.
Apologies Bluesky, despite my avatar name, I assure you I am very serious about this, and the only way I do not break down in depression is by trying to be lighthearted. My intention is not to disrespect or go against any rules. Sincerest apologies.
My question rephrased:
payments already made be accepted as a conclusion of your iva
Can I actually ask my IP to advise my creditors of this as an option Bluesky? isnt this in effect breach of my arrangement?
Usually if you cant remortgage either your IVA will conclude or you would be asked to make a further 12 months payments in lieu of equity.
Check the wording with regards to this in your original chairmans report that will have been sent to you in the beginning.
Make sure you speak to your actual IP and not just a member of the office staff.
agree with lisa, in your case funnymoney i think your ip as left it a bit late in the day to ask you to remortgage so i think you have a good case to ask for your iva to be completed with your final payment,or at least a small lump some of a few grand should be considered under the circumstances.you can ask for a variation meeting regarding any offers without breaching your iva,if not accepted then the iva resumes as normal.the worst case scenario is your iva could be extended for 12 months but your ip company have left it a bit late to contact you regarding the equity clause.no worries the professionals will advise later good luck.
Last edited by MRBLUESKY on Thu Mar 03, 2011 2:56 pm, edited 1 time in total.
Given the current market conditions for remortgageing, it is now regarded as fairly normal for creditors to accept a 12 month extention to an IVA where no additional money can be raised. My suggestion is that you should press your IP about this option before thinking about borrowing any more.
If there is equity and you can raise a small secured loan this would close your IVA down. It would also be cheaper than a total remortgage and while an extension to the IVA is an option it really is a last resort. The IVA was originally proposed based on an equity release via a remortgage in year 5 so a small secured loan is a reasonable compromise.
Thank you all for your advice, sincerely appreciated.
IVA company came back to me and confirmed they cant get an equity release for me, and nor can I get a secured loan. So what would I like to do?
I wrote a very polite letter, and explained that i hoped that my intentions were very clear that i have paid for the last 60 months and have was happy to agree to the remortgage for the final lump sum, obviously this cannot happen due to the current economic climate, so I would hope this would not be perceived as negative from me.
So the best offer I could make was reluctlantly to go one for a further 12 months with an increase of £10 per month.
they came back to me saying that obviously this is a significant difference in to what was orginally offered, and I must be aware it may fail.
This is horrible. I dont want to think 5 years I have done this to fail, surely, if the proposal is not accepted, cant i have some time to negotiate? is this actually a final meeting that will happen that I could possibly attend and try and explain that the reason I cannot fulfill the remortgage is because no one will let me remortgage?
How awful for you funnymoney. I would think that your creditors will be happy to go for a further twelve months.
We are supposed to raise £28k for our equity clause which isn't going to happen so will continue on for a further twelve months for a considerably less return and the creditors are obviously happy with that.
Ask that your IP puts this offer forward.
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
Hi -- your IP is obliged to put your offer to the creditors. If they reject YOUR IP has left you no time to manouvre (which is bad management of the affair on their part), so I would think it would (at least morally) fall too your IP to be making more effort on your behalf. Might I ask who they are ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Well I think part of the problem with communication has been that since my start of the IVA, the IVA company has been aquired 3 times, due to them going into administration (how ironic!)
Started with PBrecovery (which was excellent) then Synergi, which was ok, and now Cleardebt which is...a little ok.
I am in year 4 of my IVA and have just had a shock too. Like Kallis3, I thought that as I wouldn't be able to introduce my share of the equity, my IVA would simply continue for a further 12 months (beyond the normal 60). However, I have been told today that this is highly unlikely and unless the creditors receive the dividend they expected when they agreed to the IVA, they will probably fail it.
This is despite it mentioning in the original proposal that a 12 month extension may be applied for!!!
I am completely confused and like you, annoyed that all these years of paying into an IVA may have been in vain.
