Sorry, but i have another question regarding the 4th Year Clause.Here is my situation:
We have just had a valuation and have discovered we are in negative equity .Our iva has already been extended to 72 months because it looked like we could not meet the minimum dividend but things turned around for the better and we will meet it at 60 months as planned !. However we will continue to pay for the full 72 months meaning a higher dividend to creditors.
Here is the exact wording on my modifications :
'The debtors property is to be professionally valued shortly after the fourth year of the arrangement,the debtors equitable interest is to be realised and paid to the supervisor before completion of the arrangement.If necessary the arrangement can be extended to allow an equivalent sum to be paid by way of ongoing contributions for a period of up to twelve months'.
I am no expert, but does this mean that because we are in negative equity there are no funds to release so we should not have to pay over the already extended 72 months. There is no mention of a set amount to be released on any of my documents.
I am confused[?], i have tried to call IVA provider but that said that they are unsure and it will be looked at in due course.
Thank you so much for your valuable advice.I really Can't face 84 Months!!!!!!!!!
Hi Aragorn,
As I understand it if you have NO equity to raise then you should not have to extend, I think you only need to extend if there is equity of £5000 or more but cannot remortgage to aquire it. But should be in the terms of your IVA.
I'm sure an expert will be along to confirm my understanding.
many a mickle makes a muckle ...... if only I hadn't spent all the mickles
