Length of IVA??

judojub

Hi.
Just received my proposal and it is a lot to take in:eek:. One thing I have noticed though is they seem to be suggesting 66 payments rather than the 60 at £215. Is this normal? Also, after 66 payments can they still extend for further 12mths due to equity clause? So, I could potentially be in this iva for 6 and a half years!!

Foxy-Stoat_3

If you have equity or will have equity in your house before you take out the IVA, then yes, they can add a clause that extends the payments or make you take out a remortgage on year 4 and release some of the equity.

judojub

Hi Foxy-Stoat.
We have no equity in our house at the moment and who knows what will happen in 5yrs. I just find it strange they are proposing 66 payments rather than the 60 and then the possibility of another 12mths on top of that.

Foxy-Stoat_3

Thats because you are able to keep the house while your on the IVA, its different if you were renting.

By reducing your payments to £215, assuming your paying a lot more now and struggling to buy food etc, you are able to keep your house and mortgage. After 5 years the house should of increased in value and they could ask to remortgage to release the equity, depending on values in 2016 and if you are able to afford the remortgage repayments.

The other alternative is to sell the house and start renting (no good to anyone) so an additional 6 months of £215 and an extra amount on the mortgage is a good option and helps the creditors get back more of the money you owe them.

If you have a house already and dont agree to the additional clause then the creditors can vote and make you insolvent anyway and will go down the BR route which you would lose the house.

judojub

I have no problem paying those 6mths. Just thought it was unusual. Also fully prepared for an extra 12mths after that, as even if there is equity I doubt very much we will be able to re-mortgage.
Thankyou.

Foxy-Stoat_3

As I said, if you were renting now then 60 months is the normal term for IVA's.

Its good that you have a mortgage already and able to keep the house.

Good luck with it!

Charco_2

Still seems strange!

What is the reason for the extra 6 months?

People with houses still do IVAs over a 60 month period... any extensions to that usually come in to play towards the end of the proposal when there is a clearer picture on equity or other assets that might need to be addressed!

Who is the company you are using?


EDIT: Confirm that it is 66 PAYMENTS and not simply a duration of 66 MONTHS! Have a look at the proposal and see how many times it multiplies £215. The extra six months could simlpy be paperwork administration time... or pehaps if you ran into difficulty it allows more easily for an extension for you to catch up on possible missed repayments.

judojub

Hi Charco. We are with GT.

Charco_2

see my edit!

judojub

Yes Charco!!!! THANKYOU!!

I have just re-read. It says 'IVA Duration (months) 66. Number of contributions 60. Monthly contributions £215.
That must be it.

judojub

I also just noticed that they have put down expenditure for pets and insurance. I don't have any pets!!