remortgage

[tramps]

what is the claus in the iva contract, that states you may be required to remortgage your property, to pay off debts, i do not want my home to be at risk, and certainly do not want to start takin on extra debt when gettin to the end of my payments,

[pbeck]

You can't avoid it, it's now standard in IVA proposals, if you want to do an IVA, you will have to agree to remortgage your property in the final year up to 85% of its value.

If your property has no equity in it at present, then this is unlikely to affect you unless property prices start rising again, of late they've been falling.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[jayrob]

so does that mean if your iva was agreed say you pay back 38,000 out of 58000 and you are given a property two years down the line thats worth 195,00 that you would have to pay back the remainder of the 38000 agreed when iva started or the remainder of original debt of 58000.
am a little confused

[tramps]

so if i have 15,000 equity in my property, i must remortgage to pay that 15,000, at the moment i have no equity in my house, if that stays the same i wont have to do it,

[MelanieGiles]

Jayrob - yes I have already dealt with this point in another post

Tramps - the figure is worked out on the basis of the value of your property, less additional borrowing based upon 85% loan to value - and then you pay over the difference between the new and old loans into the IVA. So you will always be left with 15% of the value of your property.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jayrob]

hi melanie
my husband is just unsure whether it would be the agreed iva amount or the original amount borrowed
sorry to be a pain we just want to be clear.
thanks
jayne

[MelanieGiles]

The original amount borrowed.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
In an IVA you owe the original debt until the dividends are paid and the IVA concluded.Only then will the balance of any unpaid debt be written off.So if you receive a windfall during an IVA it will go towards paying your full debt and not the remaining IVA payments.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp