IVA and final year equity payments

El_Morbo

Hi all, I have just completed a fifth year of my IVA. The expected amount to be paid back in the initial Chairmans report was 23p in the pound, but due to my improvements in job and pay I ended paying in 32p in the pound. I am now entering a sixth year of payments, after equity discussions etc. My IVA provider have been excellent and more than helpful throughout.
My query is though, that I was led to believe that the final year of equity payments would only be required if I hadnt paid enough in over the initial five years, or does an IVA come with the equity clause as standard?
I hope this is clear enough, thanks in advance for any suggestions given.

wildhouse_2

We are just entering our 5th year and at the 6 month point we are supposed to get the house revalued for equity release and try for a remortgage to realease those funds...if the amount of equity isn't enough we then have the option of continuing for the 6th year maintaining the payment or getting a relative to stump up the full years payment to buy us out of the 6th year. we were told that the likelihood was we wouldnt get a re mortgage for the 6th year due to our credit rating so would likely have to do one of the last two options..continue or lump sum

El_Morbo

Yep, Wildhouse, thanks for that, weve just done the valuation business. The remortgage was not happening so we too were offered the chance of finding a lump sum, which could only happen with a Lotto win. The amount they wanted as a lump sum was shockingly higher than the equity though - not that it made any difference.
I can see the light at the end of the tunnel though, 12 months from now wont take long!

helsbels72_2

hiya we are in year 4 month 11, so nearly there! The way IVA works is you always owe the whole debt not the projected repayment, the remainder is only written off after end of the IVA when your competion certificate is received, unless you are paying back 100p.

did you have equity in your house? We had a valuation done by our company in March, this was only a desktop valuation and this took us into just over £5k equity which meant another years payment (we couldn't remortgage). We challenged this, had an independant estate agent value the house for less, which gave us under £5k equity, which also cancelled out the 6th year.