www.iva.co.uk

I have a 6 year IVA with a 42p/£1 dividend expected. I have to try and release equity in the property in the final year, if not to pay in contributions for another year. I pay £700pm. I have paid £30k into the IVA already over the last 2 years. Total debts are £73k. The way things are going at the moment, we are going to achieve a very high 75% dividend if I keep paying and earning as I do now.
But the house is negative equity and I am now in year 3, so unless there is a greater shift in the housing market I don't propose to be able to re-mortgage. If I achieve the dividend, would I still be expected to pay for 7 years.....or is it the case that I keep going until I have paid everything back?

Hi, unless you return 100p/£ plus statutory interest plus fees the IVA will run to term and you will be expected to pay the extra twelve months in lieu of equity. You won't be asked to pay the additional twelve months if your house is in negative equity when you come to re-mortgage.

All best x

If there is no equity at the six year point, I cannot see your IVA extending into a seventh year.

Thanks. I want to pay back as much as I can......afterall I borrowed and spent it! I just can't think beyond six years at the moment!

I agree with Mel, I think you will be ok.