What happens at the end of the IVA when we are due to release equity and there is very little equity in our property. Will they extend it or force us into sale???
There are a number of options. You need to look to the relevant clause in your proposal. As remortgaging is nigh on impossible these days - extension to 6 years is the norm. Or a third party sum up to 85% of the value of the debtors interest in the property.
Or indeed if there is no equity at all (or negligible) - there may be a clause that allows you to complete at end of 5 years. Are you currently in a IVA or just considering one?.
Hi
The IVA protocol states that creditors will not ask you to sell your house.
If there is equity but it can't be released then a twelve month extension is the usual route
Regards
Don't forget that if your IVA follows the IVA protocol - you will also be able to benefit from a £5,000 deminimis level as well, which covers smaller amounts of equity.
