Five years up on IVA, and cannot make lump sum payment.

Sagwala

As title says IVA up in Aug 2013, but no equity in house, which was originally entered into the arrangement at £12500.

IP has had all relevant inc/exp info and info on house price versus mortgage balance to confirm no equity.

What is likely to happen? IP says that creditors will likely accept a continuation of the agreement for 12 months at current £300 per month.

But is this really so? Will they really accept what will be £3600 instead of the originally agreed £12500?

Do I have any options, your advice appreciated.

Depth_Charge

Sagwala wrote: »

As title says IVA up in Aug 2013, but no equity in house, which was originally entered into the arrangement at £12500.

IP has had all relevant inc/exp info and info on house price versus mortgage balance to confirm no equity.

What is likely to happen? IP says that creditors will likely accept a continuation of the agreement for 12 months at current £300 per month.

But is this really so? Will they really accept what will be £3600 instead of the originally agreed £12500?

Do I have any options, your advice appreciated.

Hi

What does it say in the terms and conditions of your IVA?

12 month extensions are common depending on the above?

If there is no equity, then there is no equity meaning options are limited either way really I should imagine.

Maybe this will work in your favour

Best wishes and hope things turn out OK for you.

cheesedoffwithdebt

HI- mine is written up that if there is not enough equity (from memory I think there has to be 85% or more) then the IVA is extended for a further 12 months.

Your creditors will already have understood that the equity position might change after 5 years - is the drop because of falling house prices?

To be honest it sounds like continuing for another year will cost you less so if it's agreed by the IP and it would have been in the original proposal, so this is nothing new, I'd go along with it. I am already braced for the fact that I'll have an additional year because I cannot see house prices booming before 2015.