Hi. This is my post on here. I would really appreciate some advice. We are in the last six months of our IVA.The IVA company that we are with is the third one that we have had in the last four years as the previous two were liquidated. The terms of our IVA are that in year five we needed to get a valuation of our property and may be asked to get a mortgage to pay £10,000 each if there is enough equity (they are only entitled to 50% of our equity). We have had a valuation and we have approx £50,000 equity. Our IVA says that if we cant pay a lump sum, they can ask us to pay an extra 12 months contributions. We heard yesterday that they want us to increase our IVA by 24 months not 12 months as we mightnot get a mortgage to cover the lump sum.Are they able to do this? Our practitioner inferred that she would let our IVA fail if we do not accept this change in terms and conditions.I would really appreciate advice as we are really worried. Thanks Sally
Sally have a look at the posts on here - this seems to be amajor concern for a lot of people.
What most people do it get a few property agencies around - get the valuations done then you know where you stand,(you may be supprised/upset about the valuations)
Again as most people know - now is not the time for people in IVA to try get a mortgage (very unlikely to)so most people have resigned to the fact if there is suitable equity then a extension to payments will surffice.
By the time you paid for valuation fee/booking fee/solicitors fees - even if you could get a mortgage, you still may find an extension works out not that much more expensive
This is an awkward one due to the fact that your proposal states a specific sum to be handed over, so there is a particular dividend the creditors are expecting to realise. Recent proposals generally only give an estimated dividend and not a set sum to aim for.
It is possible to ask your IP to call a variation meeting and propose a 12 month extension in lieu of equity ( this might get accepted). The creditors might seek to change this to a 24 month extension, but you wouldn't have lost anything by trying for 12 in the first instance.
Remember when you are valuing the equity, you are looking at a forced sale scenario, so only consider 85% LTV as realisable.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
hi sally totally agree with foggy ask for a variation meeting and propose a 12 month extension based on the terms of the original 12 months stated in your proposal.
Agree with all others - a 12 month extension is reasonable, but 24 months seems a little harsh. You have the right to request a variation and I would speak with your current IP and propose this - well done for getting this far - you are so close to the end keep going and soon enough you will be smiling on the other side of debt !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Hi Sally - as your iva provides for a 12 month extension in lieu of equity, I am struggling to see what authority your IP has to ask for 24 months. That's the question I'd be asking! The only authority I can think of would be if creditors asked for 24 months as a modification in your chairman's report from the acceptance meeting. Have a re-read of that report (it trumps the proposal). Let us know how you get on x
I think you need to speak to your IP about this and clarify the position.
Two years does seem a bit harsh but it will depend upon your particular agreement and whatever it says in your proposal/chairmans report.
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
You must speak with your IP to try and find out why you need to extend by 24 months. Whatever happens do not let your IVA fail as you will be back close to a square one position
Regards
They cannot just make the rules up - if they want a 24 month extension, ask them to show you where in the proposals this is provided for. If it is not covered, then the only people who can sanction such an extension is you and your creditors - and in my opinion one year should be sufficient as parallels should be drawn in line with the current IVA protocol.
Good morning all. Thank you all so much for your encouraging comments.I must say that I feel a bit happier about our situation today.To clarify our terms, it says that in year 4, the creditors can ask for a lump sum of £20,000(£10,000 each) or 50% of 75% of any equity or if this was not achievable then they have the option to extend the IVA by 12 months. We have had a valuation of our house and after our mortgage and secured loan, we would have approx £55,000 left, so by my calculations they would barely get £20,000 if we could get a mortgage.No where in our agreement do they mention more than 12 months extra in payments.
A few clients have been on here stating that their IPs want to extend the arrangements by 24 months. The firms on here are not doing it so I am curious which firms are proposing these extensions. I am also cynical about the motives as extra fees are charged for longer arrangements. Who is your firm?
They must operate within the terms of the original proposal and not just change it after nearly five years. Produce evidence that you cannot get a remortgage which should be easy enough to do and demand the IVA is extended by twelve months in line with the agreement you signed and had approved. I see no need for a variation from what you say as there are no changes from the original proposal.
Synergi were bought by Cleardebt and Size5 who posts here should be able to help. You will find his details in the experts section.
This firm were taken over by Cleardebt a year or so ago, and this firm are headed up by a very reputable IP who is the Chairman of the Debt Resoluton Forum - a trade association which encourages best practice amongst debt management companies and insolvency practitioners.
Can I suggest that you arrange to have a personal chat with your new IP so he can set your mind at rest about why he feels the extension is necessary. Sometimes there is nothing better than hearing things straight from the horse's mouth.
