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  • FIRST POST
    MurrayMint
    IVA's - equity release in 4th year
    • #1
    • 21st Oct 08, 2:06 PM
    IVA's - equity release in 4th year 21st Oct 08 at 2:06 PM
    Hi,

    This is a question I added to someone else's thread on DFW, but it was suggested I post here for advice:

    If you've agreed to an IVA of say 50% of debt plus fees of X, in year 4 of the IVA, if you had the equity, could they force you to remortgage for the remaining 50%, so in actual fact you would have paid 100% debt plus X fees??

    I'm struggling to understand how this part of an IVA works, there doesn't seem to be any clear guidance about this. :confused::confused::confused: What if you can't borrow the money - how do you release the equity? How should you repay the secured loan (equity release) if you couldn't afford the debt repayment? Do you have to borrow it from any sub-prime lender willing to touch you and therefore pay high interest?

    Thanks for any answers!
    MM
    PROUD TO BE DEALING WITH MY DEBTS
    Light Bulb Moment Jul 2008 /
    CCCS DMP started Sep 2008 / DMP Support Thread Member # 224
    Debt Free Day Aug 2032, Feb 2018, Jul 2032 Feb 2023
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