Charco IVA

memberme

Without all the unessessary details my wife and I started our accepted IVA in October and no problems.
Can you clarify:- Our paperwork states that after 4 years we are to seak to free up all but 5K of the assets in our house for the creditors as part of the IVA but if we fail to secure a remortgage or loan, then the house is discounted from the future calculations and they can either add a year or forget it?

I see from other postings that you say they can hang on and waite for a period of years to see if we can free up the assets then. Our policy does not mention this and this would effectivly mean leaving the IVA open for an indefinate period of time, even when we may have stopped payments.

Is this correct or does it vary and depend what is written. As my legal paperwork does not state that possibility i would have thought they can't hang on.

What are your thoughts please?

Charco_2

I really wouldn't worry about it.

It is really unlikely. It CAN happen. But highly unlikely and probably does depend on what your paperwork says. It would be for more extreme circumstances (an IP can hardly say "lets just forget about that £100K coz it's going to take too long to realise")

Usually the proposal put forward says that you will not be forced to sell up (but the creditors can modify that at the creditors meeting). If you are unable to release the equity (because of your sub-prime credit rating) your IP CAN recommend that a restriction is put on the house saying that if at a later date you do sell up/re-mortgage then they should be notified about it to deal with their share for the creditors beneift... 999 times out of 1000 they just take what they can get however and close the case asap!

If your IVA says that it will be discounted from the calculations then that's what'll happen... generally if the equity is low enough, they'll extend the IVA for a year instead of forcing you to remortgage