if my property value increases

[jay.j]

if my property value increases, can i close my iva? i started it 1 year ago

[MelanieGiles]

Hi jay

The effect of your property increasing has little effect on your IVA, unless you have the ability to release equity and make an offer of settlement to creditors. Was the property included in the IVA - ie 4th year equity release?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jay.j]

no, property not included in 4th year release. property increased by 20% in my area in 12 mths. 70000 over 5 years - 7000 pd. remaining 63000. equity around 40000, brother can lend now upto 18000. would it work if i offer to settle. i am afraid to approach ip at this stage- do they give independent advice.

[iva_squirrel]

Hello Jay,

Welcome to the forum.

I suggest you speak to your IP and explain the situation. You could make an offer of settlement to creditors.

Your IP can ask your creditors to let you pay a lump sum which is less than the full amount of your debt. This is called a Full and Final Settlement.

In return for this payment your creditors agree to write off the rest of what you owe.


Kind regards,


Julia


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[jay.j]

can you suggest which lenders lend for people like me wanting to settle the iva. is 1 year too soon ?

[neverending]

Hi
There are many companies out there that can help you but I would suggest using a broker,Welsh boy on this forum has been highly recommended.
As a matter of interest why was your property not included within the IVA terms,is it because you are returning a 100% dividend ?
Regards

[MelanieGiles]

Hi again

I am assuming from your post that you are in an IVA where you have agreed to pay in £70,000 over a five year period, and have paid £7,000 to date, leaving £63,000 outstanding. I therefore do not think that an offer of £18,000 would be well received at this stage.

It is curious that your property was not originally included- was your IP aware of the property and did he correctly disclose it within the proposal? Probably too early to think about equity release to complete IVA, but in a year or so when you have paid more payments in, and the equity has hopefully risen again, a remortgage to extract suffiucient equity for a full and final settlement is a real option.

But do talk to your IP about this now - as he has detailed knowledge of your case which cannot be appropriately reproduced within the forum.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Hi
I read the post that there was £40k equity and theopportunity of a further £18k gift from brother.
Regards

[jay.j]

at the time of iva, the house had a equity of only 2500, so ip said it wouldn't be included. but i live in london and the congestion zone changed this feb. since the announcement, its value has gone up considerably.
i meant 40 + 18,000 = 58000 as a settlement offer instead of 63000 now owed. could the creditors now go back on the iva and ask for more money.

[MelanieGiles]

The property should still have been disclosed as an asset in your statement of affairs.

Sorry, I misunderstood that you meant £40k plus £18k. So now you want to offer £58k against £63 - seems like a good deal to me. Are you intending on selling the property to raise the £40k?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jay.j]

the property was disclosed at the time of the iva. one of the creditors has the mortgage.
i was hoping to borrow as a secured loan over 5 years. i might be leaving country, so the rent pays off most off the mortgage per month.and also, i dont have to worry regarding becoming bankrupt when i am abroad.

[MelanieGiles]

A secured loan over 5 years to raise £40k will be very expensive to service. But if it is affordable, and you feel that it is better to clear off the IVA, get your Supervisor to propose a variation for you.

Don't forget to let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk