www.iva.co.uk

Please help. We have just completed 5 years of our Iva but had an equity release clause in final year but have not been able to obtain a remortgage. Now our IP suggests putting forward a 12 month extension or a bancruptcy comparison to the
Creditors. We as advised to take out an Iva to avoid bancruptcy and also questioned at the beginning if we would lose our house if we couldn't remortgage. We were told we wouldn't lose our home it would probably just be the extension. Please advise if they can do this to us as we at our wits end.

This is what I was told too Wayne after 2 years on a DMP we have just started our IVA and am worried as we will to have LTV under 85% but were told that we would just have to extend for a year as they couldn't make you extend your mortgage term. Really hope you get it sorted out and hopefully it might give me some answers too.

Surely the terms of your IVA dictate what is to happen in the event that you cannot remortgage? It is usual to have to pay for another 12 months. Is your IVA governed by the IVA protocol?

I would imagine that the creditors would approve a 12 month extension. At this stage of the iva it would be unlikely that your creditors, your IP or yourself would favour bankruptcy.
Your proposal document, as Mel mentions, should allude to what will happen in these circumstances.....

Yes I believe that we are covered by the protocol as of Nov 2008.
Our IVA agreement states that should we not be able to release any equity we should either obtain an equivalent amount from a third party or extend the payments by a maximum of 12 months.
It also states that at no time do we intend to sell our interest in the property.
Modifications to the IVA agreement were that a variation meeting to put forward our alternative proposal should be held if the equity could not be released.

At the end of the 5 year term it was initially suggested by the IP that because of the equity in our home we should propose to extend our IVA by 24 months but this had never been mentioned or noted in our agreement. It was always 12 months maximum.
Since then we have also been asked if we would consider selling our home.
When we also refused this we were told that a 12 month extension would be proposed but with a bancruptcy comparison.