What happens at end of iva? i have 2 years left but am just wondering

carl_t

Hi,

I currently have two years left on IVA and just wondering what happens at end usually, with regards to the house that is owned by myself?

There is no final settlement etc usually to pay or anything is there?

Comments would be grateful, thanks

Vikipollard

Hi,

What does is say in your proposal? You need to check to see whether you are required to (attempt to) release equity in your property in month 54. If you are, then I assume they will contact you with further details, but you could ask your IP. As I'm not on the mortgage and therefore cannot release equity I had to pay for six years, not five. Your proposal should give you a clue anyhoo.

They will do the annual review that you are used to now, and that will determine if there is any additional (salary) monies to pay. I had to confirm that I hadn't received any windfalls etc as well.

Then there is the thorny issue of PPI which you will be required to allow them to investigate if it hasnt already been done. Again, it might be worth asking your IP about that ahead of the game.

Mine have only just raised PPI as a requirement (I don't believe it was missold, but no one is listening), and that is 5 months AFTER my six-year IVA (payments) stopped. They won't issue the completion certificate until they have claimed the PPI...and appealed if it is refused...

As you can tell, this particular aspect sticks in my throat, especially as they've had six years to do this, but I give up. Just give me the s*dding certificate and let me move on with my life.

cheesedoffwithdebt

I agree- you need to look at the original proposal.

You don't have to find a lump sum which I read as your main concern. The way it works is that your creditors will have agreed to reduced payments but with the caveat that after almost 5 years you would need to see if you could release equity in your house, or you may have to continue paying for another 12 months.

I had very little equity in my house at the beginning, so I doubt I will be able to remortgage- you need to have about 25% of house value free (so your mortgage needs to be 75% of the value of your house or less) so mine would have to increase quite alot in value which I doubt given the current financial situation in the Uk and even with rumours that house prices are going up.

If you cannot find your original proposal then check with your IP.