Applying for IVA when on IO mortgage.....

debtfree2016

Hello
Please read as this may effect some of you... when I applied for an IVA for which I was accepted:j, At the time my mortgage was Interest Only and on a SVR. My buiding society contacted me 4 months into my IVA to tell me that the IO period was now up and the maximum period for IO is 3 years reviewed every 6 months. This was never taken into account when applying for the IVA and don't remember being asked by my IVA provider.:eek: Thus.... 1 full year in to my 5yr IVA and i'm now on a full repayment and needing to find an additional £465 less a gracious 15% reduction from my IVA provider per month of extend the IVA for a further year.:rotfl::mad:
**Please note this is based on my onw personal experience**

Anondebtadvisor

Can your IVA company not call a variation meeting to vary to terms of your IVA?

debtfree2016

Hello Anondebtadvisor, yes they can call the meeting but I have already been informed by the IVA company that the will extend by a further year.

Anondebtadvisor

Is there a minimum dividend for your IVA to acheive?

That suprises me really because if your DI is reduced, i would have thought that they would call a variation for reduced payments and request the minimum dividend be removed as well at the same time.

See if you can discuss this with your IP? which firm are you with?

debtfree2016

I'm with Payplan

Anondebtadvisor

Speak with Payplan because they can call a variation to propose to reduce payments and remove any minimum dividend requirements without an extension to your IVA.

It is not payplans decision, ultimatley it is for your creditors to decide

debtfree2016

Hello Anondebtadvisor, thanks I will look into.

debtfree2016

I have just has clarification that there is no minimum dividend, and i'm paying back 49p in £1.

Anondebtadvisor

That should make it even easier, they just need to call a variation meeting with proposals to vary and see what the creditors say.

What other options are there? for the IVA to fail and that is not in your interests, PPs or the creditors

debtfree2016

I also mentioned that if it fails then there is no interest to anybody, the IVA company seem to be adament that the creditors will reduce the payments but extend the time.. I know it's down to the Creditors to decide but i'm not sure how much influence the IVA company have on this.

Anondebtadvisor

If they put forward a variation the creditors can ocassionally request an extension to 72 months.

It sounds like PP are going to propose an extension?