www.iva.co.uk

We are with DFD and are approaching the remortgagestage of our IVA. We spoke to an adviser last week to ask about the process, we know that we have no equity in the property, as we have been in negative equity throughout our IVA (property prices are slow to rise where we live). We asked to clarify that our contract states where there is less than £5000 equity, no further action will be taken with respect to the property. DFD then said that this would be at the supervisors discretion and we would have to pay upto 12 months payments in lieu of NO equity. I have checked both chairmans reports, my OH and I are in interlocking IVA's and there is no modification relating to equity. Is this right? has anyone ever heard of paying in lieu of no equity, and what does it mean to take no further action in respect to the property? Sorry for rambling, but am rapidly getting more confused!

I would highly doubt this is right - however if you have a clause like ours does with DFD you might want to read our thread here:

http://www.iva.co.uk/forum/topic.asp?TO ... hichpage=1

I only say this as the clause in our modifications meant ANY equity had to be paid over.

Luckily we proved our negative equity and did not have to extend.