IVA and equity release

Gye_Nyame

I'm aged 62 in the fourth year of my IVA arrangement.

My supervisor has just written to me to send her two re-mortgage quotes together with my mortgage redemption statement to enable her calculate how much to be paid to end the IVA in year four.

The arrangement states that 100% of the equity after the re-mortgage will go to the creditors. It also states that if I'm unable to get a mortgage I will give an alternative option which may be to extend the IVA to six years.

Why are they asking for more equity in the property when they took the endowment and asked me to cancel the endowment at the begining of the arrangement?

At 62 I wonder if I will get a re-mortgage so the year six option is what I'm considering. But how will my contributions be calculated? Will it be based on the equity in the property or my income?

Will I be made bankrupt if they are not happy with what the returns from the sixth year will be?

Charco_2

You will not be made BR provided you show willing.

If you are unable to obtain a remortgage (or if the amount of equity you are required to release is small enough) then you will be able to extend your IVA by a year instead of remortgaging (this is much better financially for you). Alternatively a friend or family memebr might be able to make an offer in lieu of the equity.

The contributions in the sixth year will be the same contributions you have been making all along unless your Income and Expenditure has changed.