www.iva.co.uk

Hi, we have just finished our third year of our IVA and just started the fourth year. We have just had letters from our IP regarding the fourth year equity release. Although we have a "joint" iva, my clause says if I can't release any equity (v unlikely) I may be able to carry on paying for a further 12 months but my husband's says if the equity cannot be raised the supervisor must convene a general meeting of creditors to consider the debtor's proposed alternative.

What does that mean and what would happen as these clauses are different? At the beginning of the IVA our mortgage was fixed for 3 years and we have just had a letter today from our mortgage lender stating that the monthly payment has changed to the SVR (quite a bit less now). Could someone please explain if the creditors would accept the extra monthly funds in lieu of any equity and for how long. I don't want to go through another creditors meeting again!! Thanks

I think that a further creditors meeting will be helpful to you Stella, as it will probably mean that creditors will vote to accept the further year in your husband's case as well, and thus rectify the conflicting modifications.

Your mortgage saving cannot be used in lieu of your equity, as that should be made available to creditors in any case by way of increased contributions.