IVA support and discussion thread

UpToMyNeckInIt

Depth_Charge wrote: »

Hi

Just read an interesting thread on the other forum (started today) about someone being advised to take a secured loan, wondered if you had seen it?

Reading your last post again, I also wondered if you could give us your definition of the 12 month extension and secured loans especially straightforward protocol IVAs?

I suspect you may have expected this type of question and scrutiny if just to ,balance' things up a touch, well if you did, then here it is:)

Could be more to come on this:) but again no surprise there maybe:)

DC

Hi DC,

Yes, I had seen that as well.

Yet again though it is DFD. All such similar posts have also been DFD customers, leading me to believe that they are the only company doing this.

Depth_Charge

UpToMyNeckInIt wrote: »

Hi DC,

Yes, I had seen that as well.

Yet again though it is DFD. All such similar posts have also been DFD customers, leading me to believe that they are the only company doing this.

Hi

Just read the thread again with further posts

I am struggling with the laughter if I am honest considering a question I have asked on here numerous times.

I think a few questions are still unanswered on the other forum too from a while back

I wonder why

Have you seen it Jouster:)?

Just my take

FrankProp

IVA for the business and our own home

Would be grateful for some comment about what happens to our own house in an IVA.
We are going to try for an IVA because our buy-to-let business has completely crashed, shortfalls are £486000 including our own mortgage which is repayable June 2016.

Can we put our own mortgage on our own house into an IVA of which the bulk is the b-t-let mortgage shortfalls? – but what happens in June 2016 when we are supposed to pay back the capital ?.

Does the mortgage company still accept the repayments, ie their part of the IVA monthly payment such that after 5 or 6 years of an IVA our debt to the mortgage company ends and we are still in our own house?

I’m having problems getting my head around what will happen to our own house in an IVA. I know I can ask Step Change for advice but would be grateful for info from other sources as well.
Thank you.

UpToMyNeckInIt

Hi FrankProp,

IVA's only apply to unsecured debt: So a shortfall from surrendering a house in negative equity can be included, but your actual residential, or any buy-to-let mortgages cannot.

Every mortgage customer in the land would want an IVA otherwise!!!

You are right to seek a few expert opinions on which rout you may want to take. With being near enough £500K in-the-hole, have you also thought about bankruptcy as an option. (Particularly as you apparently have no means of repaying the capital for your residential mortgage). I believe that you could then include all your debts - unsecured or otherwise.

Speak to Stepchange a you say, but I also suggest the CAB, and even a few IVA firms (google 'insolvency practitioner reviews' for a link to a decent review site), if you think that is to way to go.

Best of luck.

UpToMyNeckInIt

This is a game-changer.

Secured loans as an equity release vehicle in Month 54 are to be enshrined in the 2014 IVA protocol:

http://www.iva.co.uk/forum/topic.asp?whichpage=2&TOPIC_ID=56555&#535607

Not the best of Christmas presents!!! Enjoy.

Find_The_Real

What with that and the PPI problems that will delay the certificate for many coming to the end of their IVA, you do have to seriously wonder if an IVA is the best option in a lot of circumstances seeing how they keep changing the goal posts.

Depth_Charge

Hi

Information on the 2014 protocol from the Insolvency Service

http://www.insolvencydirect.bis.gov.uk/insolvencyprofessionandlegislation/policychange/foum2007/plenarymeeting.htm

DC

UpToMyNeckInIt

As I understand it, this only applies to new IVA's adopting the 2014 protocol.

The only potential fly in the ointment for existing customers, is:

1). Having to potentially deal initially with a case worker, who may not realise the any different, or the significance of this subtle detail; and

2). When IVA companies take over other IVA's, they like to 'amend' terms and conditions (usually to allow them to take a bigger fee). Could they possibly 'update' the equity release clause as well? My guess is: Yes.

Also, it has been done with older IVA's: relaxing the criteria to bring them into line with post-2010 protocol. So could it work the other way? My IP will be in for a fight if they try it! Anyway, time will tell.

To put some sort of positive on all this, it may introduce some competition between loan companies, which may help lower fees/interest etc.

Also, as mortgage criteria continue to relax, a secured loan for a relatively small amount at say 20%APR, CAN work out cheaper than remortgaging the entire property equity at 5-7%APR more than what you are paying now (I did a rough calculation on another thread. Will try to find it to give people an idea).

One must remember that, whichever option, monthly repayment is limited by affordability criteria (max.50% of current IVA payment, with remaining IVA repayments reduced by the same amount). So the higher the APR, the less you can borrow. As soon as your credit rating is restored, you swap to a sensible-APR loan (may be easier said than done of course).

Depth_Charge

Hi

A very interesting and significant development that no doubt we will hear more about

The fact that secured loans has been added to the 2014 version and that they were not included proir (or now if you like) would surely mean that secured loans only apply to new IVAs adopting the 2014 protocol.

They have proved the case by doing this havent they ?

No need for the secured loan brokers to even contact anyone currently subject to a protocol compliant IVA with a 12 month extension clause when a re-mortgage is not available / possible..is there?

And what about any (secured loans) that may have already been sold or under' negotiation' so to speak (thats if there are any of course)

Just my opinions that are open to debate as always

Find_The_Real

:xmastree:Just a mini break in the discussion as I just wanted to wish everyone a very Merry Christmas

and I hope 2014 is a good year for everyone. I was also like to thank my fellow posters for the all the help, advice and support over the past year.