Advice please

kns_2

I am due to pay my 60th payment on my IVA in October, and had a call today saying that they have not received my valuation that they asked for 10 months ago.
My questions are why 10 months wait before they tell me this?
My proposal say's The debtors property is to be professional valued within 3months after the fourth year anniversary of the arrangements, the debtors equitable interest is to be released and paid to the supervisor before completion of the arrangements .
If necessary the arrangements can be extended with approval of 75% of the creditors voting to allow an equivalent sum to be paid by way of on-going contributions for a period of up to twelve months.
It’s a good job I have the original valuations still the question is will my IVA end next month?
As there is no equity.
1st valuation is between £115000-£120000
2nd valuation is £114995
3rd valuation is £120000
My mortgage redemption is £118795 and I have a secured loan of £13000

I don’t want to be fobbed off with another 12 months when it does not look like any equity in the property is available.
Also if there was how they can wait 15 days before the end of my IVA to tell me this as it states any equity should be paid before the end of the 5th year.

Some advice from independent parties would be much appreciated, so I would know what to say if they try to make me extend for 12 months.
Sorry for the long post but thanks guys in advance.

FoggyBrain_2

Hi. A lot od stuff depends onm playing with words, I am afraid. As to the timescale, they would argue that you knew of this arrangement in advance (5 years ago) and should have been preparing for it, Indeed, they reckon they asked for valuations 10 months ago. Fast forward to now .... it's 15 days before your last paymentunder the current arrangement, not until the end of your IVA. THAT doesn't happen until everything is tied up and the completion certificate is issued.

As you say, at least you have copies of the original valuation, so the terms of the IVA have been met, i.e. the house was valued during the first quarter of the 4th year. So they cabn't quibble about that. As it clearly shows negative equity I would hope that would be the end of the matter and it shouldn't take an IP long to come to that realisation (oh ... but it probably will !!).

Anyway -- the way I see it, on the info above, is that your payments should finish at month 60 with no extension and the IP start the completion formalities to issue you with a completion certificate as soon as possible ( can take up to 6 months, depending on who you have working for you).

Mind you, and this is just me being stupid .............if you interpret the wording literally as you equity is (say) minus £10 - 15 k, they should extend and the monthly payment to make up the equivalent equity. So the repayments would be around £1k per month .... in your direction !!!!!! I could see that happening !!!!!

shelene

They will probably want another annual review and u will make another 12 payments to take it to 6 yrs unless u can find a lump sum of money from somewhere else for a full and final settlement,

I'm on 4 1/2 yrs and just going through this now, they looking at another yr as I cannot release any money from my property as initially thought at the beginning of my proposal :-(

FoggyBrain_2

Many older proposals, now coming up for completion, are being varied to bring them in line with modern proposals, which is, if there is equity which cannot be release, a 12 months extension is applied instead. However, if there is no equity ( or very little) then the IVA ends at month 60 (or 72 if it was a 6 year one in the beginning). Many helpful IP's are putting this variation forward and generally getting it accepted. However, the less helpful are sticking to the original agreement and being very stubborn.

kns_2

I think you are missing the point there is no equity in the property and there was no equity fiqure set out at the start of my IVA.
As my property was in negative equity to start with.
All info was sent to IP 10 months ago so Iva was adhered to

FoggyBrain_2

kns wrote: »

I think you are missing the point there is no equity in the property and there was no equity fiqure set out at the start of my IVA.
As my property was in negative equity to start with.
All info was sent to IP 10 months ago so Iva was adhered to

Sorry. Who ?

kns_2

FoggyBrain wrote: »

Sorry. Who ?

Sorry FoggyBrain Shelene is missing the point thinking that there was equity in the property to start with.

FoggyBrain_2

No worries, kns, I thought I might have missed something there :-)

debtinfo

well, presuming that there is no equity, there was no stated amount to be released, and there was no minimum dividend (can you confirm if this is the case) then i think you are in the clear

kns_2

There was a min 29p in the £ and that was what my payments were worked out to be,not including any equity in the property as there was none.

All payments have been made plus an extra £600 I think I was due to pay 33k back and would of paid £33.5k back in the pot:D