I'm on the 4th anniversary of my Iva and instead of doing a annual report my IP is approaching my creditors with a variation report due to a change in my personal circumstances and a 3rd party that is offering a lump sum to call the Iva complete. The question I have is I have no equity in my property and was of the understanding that if this was the case that my Iva couldn't be extended for a further 12
Months, however in the variation report it details a dividend return of 46p in the £ if my Iva was to continue with a 12 month extension so 24 months from now or if they accept the lump sum they would see a return of 49p in the £ but they would also recieve the monies much sooner. So with no equity available should it be an option to extend by 12 months? And how likely are creditors to accept the lump sum offer? The original proposal when started should have returned 64p in the £ but obviously circumstances change. Thanks in advance for any responses and I wish you all a happy new year.
Hi. The question of equity has to be dealt with as it is an outstanding matter. No-one will know what the equity situation would be when you come to month 54 and get the valuation, so they have to present possibilities as they know them now.
You might consider that you have no equity, and the consequences of this will be detailed in your proposal. However, it hasn't been proven to the creditors that no equity exists.
I have seen very low offers accepted in the past, as well as seeing generous offers refused. It really is in the lap of the gods.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I had to get my property valued for the full and final proposal and provide the valuations to my ip, ltv came to 89% which is above the 85% as detailed in the Iva. So as part of the variation proposal I've proved no equity is available. I think I will give them a call tomorrow as my supervisor verbally told me that it won't be extended due to the valuations but the report it detailing a 12 month extension, fingers crossed they will accept 3rd party funds and I can move on.
Again I would guess they are predicting the alternatives as, in a few months time you could be in enough equity to trigger the extension, being fairly close now.
Fingers crossed that they go for the certainty of the offer now ( bird in the hand and all that). Early completion also allows them to write the toxic debt off their books, making their accounts look healthier too.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Yeah looking at the variation report they will be 3p in the £ better off and recieve their money soon, only worry for me is the original proposal was 64p in the £ but I've seperated and my contributions need to reduce. Fingers crossed according to the variation the creditors have to respond within 28 days of the notice of the variation meeting so it could all be over Mid February.
I've contacted my ip today and they detailed that the extra 12 months comes into play due to being in arrears. I've signed everything and sent it back today, I have everything crossed that the creditors accept the offer.
Signed the approval for variation and the meeting has been scheduled for the 9th of February, ppi claims will be ongoing once the Iva is completed if the f&f offer is accepted. Fingers crossed they accept. If they accept will I get a completion cert even though ppi claims continue? Thanks
