www.iva.co.uk

we have been in an iva since June 2004 and we feel that we may have enough equity in the house now to pay off the debt. what is the best way to do this and how much should we offer? we are currently paying 63p in the pound on a £46,000 debt at £301.00 a month and have 2 years left.

Hi
First question is do you have an equity release clause in your IVA ?
regards

Andy Davie
IVA.co.uk Spokesperson

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

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

Yes we do, and can be payable at 100% if the company decide at the end of 5 years.

Then I feel that you should continue with the IVA to effect the very best settlement possible to creditors. It will be a great feeling to pay the debts off in full, and unless you are struggling to make the payments I really cannot see your IP recommending an early settlement to creditors.

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

Hi
I think that in your case you will need to return the full debt to your creditors in order to end it early.
How much do you think that you could raise from a remortgage now ?
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

we are not struggling to make the payments, but we would like to find some way to pay off the iva for several reasons, 1) my father died last year and my mother is finding it lonely on her own (we live 200 miles away and we cannot afford the cost of fuel to keep going to see her and she is on a pension) 2)we would like to move nearer to her as this is also where one of our children also lives and only moved to this area for my husbands job, but he has been given permission to move back to the original area but oviously we have a clause on the deeds not to sell. The above reasons are making me quite depressed and I have had many weeks off work due to not wanting to live in the area we live and missing our previous area, i am scared i am going to lose my job because of this which could affect the iva payments.

We bought the house in 2003 for £124.000 and a company valued it 18 months ago by a 'drive by' valuation at £140,000, but they have wrote to us in the last week saying they believe it to be worth £162.000 and would like us to use them to remorgage, they want us to offer £27.000 to the creditors.

Hi
Well there is no harm in speaking to your IP and see how they feel and what they feel would be a suitable amount.40K will pay your debts in full including IP fees but you could propose less.
As far as remortgage goes I would get a second opinion on the valuation and also the mortgage product.Just get a local estate agent to value it on the pretence that you are considering moving.
You could also move house and carry the equity release clause to your new house and just remortgage in the final year.
Good Luck and I hope you can agree a F+F.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

I still do not think that you will succeed in getting a full and final settlement early, if you could afford to carry on paying for the five years and pay the debts in full, however you can port the equity release clause from property to property, so this would not stop you relocating as Andy has already suggested. In order for your IP to propose a full and final settlement for you to creditors, they will need to convince the creditors that this gives a better return than continuing with the arrangement in its present form, and I believe that this will be difficult.

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

Just to let you know, our IVA has now been paid off, mid December, the creditors accepted our proposal of £27,000 or rather 1 did (owed the least amount £50!) non of the other creditors voted! and the transaction went through smoothly.
Thanks again for your comments/replies.

Melanie.