IVA over 5 years

srad1971

My wife and I entered into an IVA April 2006 with debt matter, this got passed to grant thornton March 2008. My wife and I seperated during this period but continued to pay, finishing april 2011. They have now contacted us and say we must remortgage the house or sell it to release any equity, if no equity we must pay another year!......IVA's are a rip off, what point was it, i may have well just gone bankrupt. We will have payed back £18,000.....we only owed £20k

My advice to anyone...go bankrupt

Vikipollard

I can understand your frustration, but this is quite common since the credit crunch made remortgaging nigh on impossible.

Didn't your proposal have a clause in it about releasing equity? Mine doesn't, but specifically says that I will pay an extra 12 months because I couldnt access any equity (as the mortgage is in my husbands name only). My debt was the same as yours and I will have paid the same amount back.

But the other way of looking at it is you may have paid £18000 out of the original £20000 debt, but that's assuming there was NO interest added to it. You would have had to pay back much more.

There is no one-size fits all solution to debt, and bankruptcy is the last resort for lots of reasons.

Sorry that your experience of an IVA now feels a bit jaded, but it would be a shame to let it fail now wouldnt it?

FoggyBrain_2

Not a wise move to go BR with a house -- unless you want to give it up !

kns_2

As long as your IVA did not say for example in year five you have to release £10k or pay a further 12 months if you cannot release this amount,then it just finishes at the end of year 5.

This would of known to yourselves from the word go.
I have just finished my IVA and had no equity in my property so it just ended after the 60th payment happy days.
So they are worth doing:beer:

stecast

Reading these posts have just answered the question that i was thinking,

My last payment is next month with a final review next month and was wondering if they would try and extend my IVA even when being told at my last review March would be my last.

They was nothing in my contract saying i would have to release anything extra or extend my IVA so they better keep to there word as i have no extra money to do this anyway.

srad1971

just spoke on phone to grant thornton, they said if i cant remortgage i must pay another 12 months, which makes 6 years of paying back, i payed my 60th payment about 8 months ago....they are the most unprofessional firm i have ever dealt with!

Vikipollard

What did your proposal say?

It should contain a clause about releasing equity/remortgaging if that is the case, but as I said before, it's common place in today's climate to have to take the additional 12 months option.

I'm surprised they've asked after the event, but cant comment on whether it's happened often with GT as they've been good (so far!) with me.

When they took over your proposal, did you not get a letter asking you to agree to bring your terms in line with current IVA ones? I know when I questioned what that meant (being the suspicious sod I am), they said it brought me into line about things like the additional 12 months in lieu of equity issue, but also allowed them to vary terms on the IVA to a greater degree if I needed them to.

Might be worth revisiting your proposal to see what it originally said to see if you have anything to argue with them about.

mavon

don`t know how I marked that post as spam .I was watching tv aswell as reading so I must have pressed something without knowing .I am so sorry .Can i unreport it?