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Hi all I was wondering if someone could tell me whether a creditors meeting is usually arranged in the last year of an iva if the equity release clause is stated? I only ask because I have the clause in my proposal and my iva should be finishing in march 2012, however because freeman jones say I have equity in the property and can't remortgage to release it my iva is extending for another 12 months however a creditors meeting has yet to be arranged. Is this normal?

Generally, at least in more recent proposals, the procedure for dealing with equity is laid down and so can be followed without needing to go back to the creditors. If your proposal states that a 12 month extension is to be added in lieu of equity, then the creditors need not be consulted.

Hi foggy thanks for your reply. My proposal doesnt specify that a 12 month extension will be put in place of equity it simply states that if equity can't be released then a creditors meeting will be convened to consider my proposals x

As foggy has said, it's the norm these days to extend by 12 months. If a creditors meeting was convened this is probably what they would ask for.

It's cheaper in the long run to accept the 12 months additional payments rather than re-mortgaging for another 20 - 25 years.

Unless there are reasons that could be considered (ill-health, redundancy etc) then you probably wouldn't be able to end the IVA next year.

12 additional payments will in all likelihood be a much better deal for you. I believe if the value of the equity can be paid in less tIme then you are only asked to fulfill the equity. x

Agree with the others that you may well have to consider an extra 12 months. Most proposals do say though that it must be at most 85% LTV and the monthly payments cannot be more than 50% of the IVA payments.

4 years is up for me in February and throughout my IVA I've been happy but dreading this milestone due to the equity clause.

I'm sure it won't be as bad as I think in the end though.

Well done on almost completing x

I'm not looking forward to that either - really don't want to speak to a couple of companies when I know what the answer will be.

It shouldn't be too bad. You know you can't remortgage so it's just a bit of an inconvenience really.

Can't see why they are doing it at the moment - just factor in the extra 12 months and we all know where we stand then.

I guess they need to monitor for when the mortgage market turns back in their favour. If everyone didn't bother trying to mortgage they wouldn't know when people can again.

True.

Can it be your existing company or does it have to be a new one, and also though, does it have to be in writing ?
We've already figured ours will be over 72, rather than 60 anyway, but I agree it is a pain !

You just have to speak to two or three companies, depending on your IP company and I believe it has to be in writing.

I will be using our own mortgage company as first port of call although I know what the answer will be!

I will contact ours too, but also know theior answer - NRAM are not lending at all !!!