One thing that puzzles me regarding IVAs

ameratsu

I understand that an IVA is meant to protect assets like your home - but on investigation, you are expected to use your equity to pay into an IVA after 4 years - just how are you meant to do this?
Plus, if you have a large amount of equity, then surely your debts are not written off, it becomes more like a charging order and you basically have to either remortage ( wouldn't that be impossible) or sell up?
Have I missed something?

ameratsu

I think this has got lost in the volume of the last 24 hours , or have people really had no experience of this?
I've searched all over the net and can't find any kind of actual examples!

peb

I don't think anyone on here has any personal experience of IVAs. Martin suggests that they are very rarely the correct path and there are pwople on the bankruptcy board who couldn;t manage following the IVA. Have you looked on the main board to see what Martin has to say?

You are right in that you end up often having to sell or remortgage your home so in that sense it really just buys you time.

Try talking to CCCS as they will take you through the options and do recommend companies for the IVA - they can be expensive which seems to defeat the purpose.

HTH

doelani

ameratsu wrote: »

I understand that an IVA is meant to protect assets like your home - but on investigation, you are expected to use your equity to pay into an IVA after 4 years - just how are you meant to do this?
Plus, if you have a large amount of equity, then surely your debts are not written off, it becomes more like a charging order and you basically have to either remortage ( wouldn't that be impossible) or sell up?
Have I missed something?

You are correct in that you are expected to realease equity if you have any, not everyone has a large amount of equity. Not everyone get a large amount of their debts written off with an IVA . The ads you see with " write of 75% " in reality does not always happen. An IVA is about paying back as much as you can afford to withing the 5 years.

It is possible to remortgage with an IVA , we did it in May. You have to pay a higher rate but it is possible. If you cannot secure a remortgage some IVA agreements have the option of extending it to 6 years.


Check my signature out , we cleard IVA through remortgage.