www.iva.co.uk

My IVA has reached the point of equity release.

My home is valued at £139,500

85% LTV is: £118,575

Mortgage redemption: £85,767.14

Amount to be realised for IVA: £32,807.86

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?

Please advise.

Darren

The amount to be raised is limited to your share of the equity so £16,400 approximately.

Your calculations do not appear to have taken account of the costs of the IVA which will need to be factored into any settlement. Do you know the extend of your IP's charges?

You will need to demonstrate that you have fully explored the remortgage option, and given your low loan to value ratio you could also consider a secured loan. If you cannot remortgage, then the settlement figure offered ought to be at least the equivalent of 12 months further payments - in your case £6,612.