4th year IVA

MrOrchard

Dear All,

I'm approaching the 5th year of my IVA, which so far has been perfect for me, trouble free and manageable. I am concerned that there may be a big review at the beginning of the 5th Year that I need to collate paperwork for. Is this the case or does it carry on ticking over as usual, bar the annual review?

Many thanks!

MrOrchard

I should mention that I don't own any property or assets.

mistercovert

If you have no property or assets you should not be in an IVA, you should have been advised either DMP or bankrupcy. IVA protect you if you have a house or if you cannot go bankrupt for job reason.
In an IVA you normally have your house property valued and any equity is released by remortgaging to add into your IVA pot. Maybe you need to take advice over this from IP. Who is handling your IVA?

Rob H

skintandscared_2

I am not a fan of IVAs for many reasons, but there's nothing to stop people without property entering an IVA. The property issue only arises where you don't want to go BANKRUPT and lose your property. It just means that you have nothing to re-finance in year 4 to raise more cash for your creditors, which makes the acceptance of IVAs more unlikely. But if this one was accepted and has been happily running for 4 years in full knowledge that there is no property to refinance, there is no reason for it not to run it's course and end successfully. The only thing that could happen now is that the creditors ask for a further year, taking the plan to 6 years. But if it's paid every month, the IVA will complete at the end of the term and the rest of the debt written off.

People wrongly state that IVAs are to protect property. They DO protect property if your only other option is bankrupty. But there is no reason why someone should not take on an IVA if they don't have property. Even with the administrator's fees, it can still mean a large chunk of the debt is written off.

It is more usual for people without property to go for DMPs simply because they are less harsh, more likely to be accepted and won't necessarily result in bankruptcy if they fail.

taplady

Thankyou skintandscared for what you have said. :T we are in an IVA with no property to protect, arranged via CCCS so I agree it is not just for folks with property. I had my own reasons for not going BR and so far so good with the IVA. We are now in year 4.

trudij

me too. and (as Ive said somewhere else) its very very annoying to hear people immediately deciding that people that are in an IVA without having property MUST have been mis-sold.
Im in year 4 too (but only 3 months into it!) and mine has been pretty much hassle free as well. Its the best move I have ever made,my company are being fantastic,and I really cant recommend them enough, SO LONG AS THEY ARE ENTERED INTO WITH THE PERSONS EYES WIDE OPEN !!!!

skintandscared_2

I think that these days it's a loss less likely that IVAs are accepted for people without property, and the current financial climate and job market make people wary of entering into something which is SO strict about payments and can fail so easily if you default. But to be honest, if an IVA does default and you have no property, what's the worst they can do? They can bankrupt you but gain what, exactly?

taplady

trudij wrote: »

me too. and (as Ive said somewhere else) its very very annoying to hear people immediately deciding that people that are in an IVA without having property MUST have been mis-sold.
Im in year 4 too (but only 3 months into it!) and mine has been pretty much hassle free as well. Its the best move I have ever made,my company are being fantastic,and I really cant recommend them enough, SO LONG AS THEY ARE ENTERED INTO WITH THE PERSONS EYES WIDE OPEN !!!!

exactly!:T ( we are also 3 months into year 4 trudij!) cant wait to get it finished !

MrOrchard

Just a quick update, this has now completed, and it's such a relief! I completed 5 months ago, and haven't had any certificate yet, is this normal?

Thanks!

balmk

Congratulations on making it through!

5 months is excessive - normally about 6 to 8 weeks is normal by the time the IP has distributed the funds, closed down accounts etc...

Contact your IP just to check that it hasn't been already issued and been lost in the post.

MrOrchard

Will do, thanks!