My IVA payments for this year have been £551.00 a month and are all up to date.
My mortgage is a joint mortgage with my wife who ISN'T in an IVA but we had a joint overdraft of £5000 which was handed over to my wife to pay back through a company called Credit Solutions which we have been paying back in small instalments.
MY IVA claims submitted was £21,798.80 and I will have paid back £19,347.11 over the 5 years through working lots of overtime to make ends meet.
My concern is that I am having to release £32,807.86 of equity for a debt that only adds up to £21,798.80 but £19,347.11 has already been paid over the 5 years.
Also... As the mortgage is in a joint name. should the equity realise not be halved?
They have also instructed that I will have to pay another 12 months at the current rate of £551.00 a month if I cant release the equity, which I have heard is practically impossible.
I thought once you had paid the total amount back over the term of 5 years it would be all over.
My parents have said to me that if I could reach a settlement figure with the creditors they would be willing to pay it off if was at a reduced amount.
Would or could this be possible? and how much would roughly be a reasonable amount to settle the debt with the figures I have mentioned?
You could make a full and final offer but given the equity and your current repayments I doubt you'd save much. The normal starting point is months left x monthly repayment (£6612 in your case), you could sound out your IPs views of offering less such as £5k
Although you started with £21k of debt there will be 5 years of IP fees on top of this, plus possibly statutory interest to reach 100p/£
