www.iva.co.uk

We are just a few months away from reaching the 5 year mark of our IVA. in September and October I had several conversations with Knightsbridge as I was aware about the equity clause 6 months prior to completion but nothing seemed to be happening. I then find out about the transfer to creditfix. I've been on the phone to them and a company called The Select Partnership have been dealing with the equity clause part. I have now received a text message from The Select Partnership that states they are unable to assist with releasing equity from our property and that these details will be returned to creditfix. So, does this mean our IVA is likely to complete when we reach the 5 years or will creditfix want to do another review and add another year on. We have never missed a payment and had some PPI put into the IVA whist we were with Knightsbridge. Does anybody know how creditfix are with this kind of situation?

It looks like you will be getting a 12 month extension, providing that your equity share was more than £5k.

Thanks Foggy but what if it is less than 5k? there is still a secured loan on the property which pretty much cancels out the equity.

If you have less than 5k your IVA should complete in 5 years.

Grayson.sc wrote:

Thanks Foggy but what if it is less than 5k? there is still a secured loan on the property which pretty much cancels out the equity.

As Kallis says, less than £5k equity means the equity release clause will not be triggered and no extension will apply --- this might be why the finance brokers rejected you. You need to check.

Have you had a valuation and established the equity? This is your starting point.

Then , depending on your terms, the extension will likely either apply and you will have another 12 months to pay, or not and it will finish.