What happens if you are unable to meet the equity

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Rockhound

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Post by Rockhound » Thu Nov 13, 2008 5:31 pm
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What happens if you are unable to meet the equity release in the final year - current lack of available credit in the system may mean this happens - can you be forced to sell your house
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kallis3

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Post by kallis3 » Thu Nov 13, 2008 6:11 pm
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Hi,

If you are unable to meet the equity release clause, you may find that your IVA will be extended for a further twelve months.

Check your chairmans report, to see if there is anything in there about it.

This is going to be affecting a lot of people at the moment.

I don't think you will be forced to sell your home - after all, if it's in negative equity, you wouldn't be able to pay the mortgage, let alone your IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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MelanieGiles

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Post by MelanieGiles » Thu Nov 13, 2008 6:15 pm
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It really depends upon the terms of your proposal - but what is quite likely is that you will be asked to pay a further year's contributions in lieu of any equity. Check the terms and conditions of your own IVA, as to be honest there are lots of differing versions of this historically, and take advice from your IP who will have detailed knowledge of your case.
Regards, Melanie Giles, Insolvency Practitioner
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