🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

IVA Extension

Skoggee Posts: 8 Forumite
edited 19 January 2012 at 7:16PM in IVA & DRO
Hi all, new here so go easy on me.... Maybe someone can help?

I paid my last IVA payment at the end of November 2011. 3 Month prior to that my Property was valued and in negative equity. As part of the proposal, £7,657 in equity was to be the released as part of the proposal to make up the dividend of 32p inthe £. One of the modifiacations was if a min of 32p in the £ is not met, then the IVA will be in breach of contract!
At no point has the proposal or the mention of extension been discussed throughout the whole term. also in my proposal it states that if there is no equity at the end of the 5 years, I will not be in breach of the IVA contract. This is all in black and white. all payments and paperwork requested during the 5 years has been 100% on time.

I asked my IVA supervisor if I will have to pay any extra or have the IVA extended due to there being no equity and there answer was no, that will be the end of it. This was asked at the end of November when they requested final 3 pay slips and P60.They then said thats all you have to do, leave the rest to me....... Recieved call off them today saying a meeting will take place on 29th Feb 2012 to discuss an alteration in the proposal and I pay an extra 12 Months because Due to the negative equity, only 12p inthe £ has been achieved......

My arguement is how can they change the goal posts to suit them when I have done everything they have asked from me...
I asked my supervisor if I Refuse and disagree with the decision and refuse to pay what will happen? They said the IVA will fail and your creditors will declare you bankcrupt???
Hope this makes some kind of sense and sorry to waffle on....

Modification...Failure to pay unsecured non-preferential creditors a minimum of 32p/£ shall be deemed a default of the arrangement.

The total circa would be £19000 + as my payments increased twice and the total debt was £48,585 with a total offer of £25,657 (£7,657 being released equity).

Costs... Nominees Fee £4000 Supervisors Fee £4000 Disburements £691 Irrecoverable VAT £1400

Total costs £10,091 Dividend in IVA... Sole unsecured Creditors 32p/£
Dividend in Bankruptcy 6p/£

Will receive update this week from them..... Spoke with supervisor again to confirm all this and they said the reason for the extension which will try to be avoided due to my record being 100%, is because of the modification at the top of the page... Only 12p/£ which they were hoping to get 20p/£ if extended..... So it seems they do have the right to apply for extension due to low dividend. OR DO THEY? That is my question??? Which is obviously no fault of mine.... Hope this makes some kind of sense....

Your help is VERY much appreciated.....


  • Skoggee
    Skoggee Posts: 8 Forumite
    Hi guys! Sorry for delay but meeting was this morning 29/02/12 at 10:00.

    No further action to be taken and the IVA has now finished and concluded!

    I'm so relieved and happy. So nice to be debt free. Stick with it everyone! I know it can be a struggle, but it's well worth it at the end.
  • FoggyBrain_2
    FoggyBrain_2 Posts: 1,121 Forumite
    Hi Skoggee -- apologies. I missed your earlier post. But CONGRATULATIONS on finishing !!! Well Done :-)

    The equity clauses in many proposals coming to an end around now are being modified as, when written, the slump in property prices wasn't foreseen. They are being brought into line with current practice.
This discussion has been closed.
Meet your Ambassadors


  • All Categories
  • 8 Election 2024: The MSE Leaders' Debate
  • 343.9K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.2K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards