www.iva.co.uk

Hi, I posted some time ago that I had been told that my IVA was to be extended by 12mths in lieu of equity, well my case worker has changed in the last month and having looked all through the paperwork she spoke to a supervisor and based on the information and paperwork I have provided they can now see that there is no equity in the property and therefore there will be no need to extend the iva.

My case worker has said that they will propose in my final report to the creditors in march that the original proposal of me paying £150 in lieu of equity is accepted and they will give creditors 28 days to respond. She did say there was a chance the creditors could reject this and they would then have to show that there is no equity in the property but that they could still request the 12mths extension, is this normal?

So I guess I just have to wait till the end of April to find out once and for all (I'll be keeping my fingers crossed till then that's for sure)!

Hopefully they will accept it. Fingers crossed for you.

If your original paperwork shows an extension is only due if there is equity in the property then they can't force you to extend under that clause because you have no equity to release and the £150 alternative you have mentioned should be accepted.

The only other situation I could see where they may still demand an extension but under another clause is if you had a minimum pence in the pound return to the IVA and that has not been achieved from your 60 payments thus far requiring the creditors to forgive and amend the minimum acceptable pence in the pound or request an extension of 12 months to satisfy the shortfall.

If it is due to a shortfall in the pence in the pound return I would personally find out how much the shortfall will be before accepting any 12 months extension. If the pence in the pound was expected to be 51p and you have achieved 50p unless we're talking huge sums of debt in the first instance then a 12 months extension would in my opinion be a bit over the top and should be negotiated in that instance.

Ask for copies of all monies paid in and claims made so you can see on paper everything yourself prior to just accepting their word on the phone it's very important.