Fourth year iva

upset_iva

My iva company has just informed me , that because i hve no equity in my house , they will have to extenend my iva after the five year period. But its not my Fault that they gambled on the market and failed .
Also just over a year ago my fixed rate mortge finished , and my payments dropped by £600 , i rang up and offered to pay more into the plan but they told me not to .
They informed me every year (review) that there would be a shortfall , but did not state how much.
Now they have written up a proposal where i have offered a further six months , but the supervisor can extend this to nine if not enough comes in . This is to be presented to the creditors in a further meeting .
So far i have refused , and have informed them .
Has anybody out there any suggestions , as i have really struggled for 5 years , and dont think can continue much longer
Thanks

To_be_Free

Hi do you mean your mortgage payments dropped by £600 or you IVA payments dropped by £600 a month a year ago ???

debtinfo

what is in your agreement that is what matters, if you cant come to an agreement then your IVA will fail and you will be back to square one

FoggyBrain_2

Hi. I am afraid older IVA's did gamble on what was a strong market at the time -- and the problems arising due to the property slump are now coming home to roost for many. Current IVA's deal with equity differently now, and if there is less than £5k can conclude at 60 months. More than £5k is normally dealt with by extenduing the IVA by 12 months as it is impossible to remortage at the moment ( however, they still expect you to try!).

Anyway -- none of this helps you in your current strife! To be blunt, you can't blame the whole gamble on your company. It is your IVA and you agreed to the terms at the time, the IP merely presented it to the creditors. That said, your IP has been remiss in not addressing what they knew would be a shortfall, especially when you had funds available. That bit IS their fault!!

As I said, it is YOUR IVA and you can ask the IP to present a suitable compromise to the creditors. Many IP's are asking for a variation bringing the old proposals into line with current practice regarding dealing with equity. So, if the creditors accepted this variation, you would have to have a current valuation, if the equity is greater than £5k, attempt to re-mortgage to release it. You will be unable to do this, so will have to accept 12 months extension. However, if the equity is less than £5k the IVA concludes at month 60 (which is what you hope for -- another gamble, I am afraid).