iva completion advice

Nichh84

Hi,
My partner and I have paid into an Iva over 7 years. We have now completed all our payments. The original debt was £56,359.20
We have paid in £36,711.55
Ppi asset received £12,44.00
Total paid in £49,155.55

I am slightly confused as to why we have to remortgage. Deducting what we have paid in against what we owed is £7203.65,.
When I contact my IP it is all in there terminology. Any help anyone can provide is much appreciated.

sourcrates

Hi,

Can I ask why is been 7 years ?

IVA normally lasts 5 years, you usually have to remortgage in year 5, if you can't do that, then you get up to another year added to the arrangement.

How come yours has been 7 years ?

Nichh84

We had a payment break due to accident at work.

mwarby

You've listed the original debt and what you've paid, but you've not mentioned IVA fees which will probably be a couple of thousand maybe more, so I'd expect your gap to be more like 10k than 7k

National_Debtline

Hi Nichh84,


Unfortunately, the answer in a situation like this is normally that it is in the terms and conditions of your IVA. IVA's are not especially flexible and if the contract requires you to do the equity release clause then I am afraid it has to be done or risk the IVA failing.


If you aren't able to get an appropriate secured loan then sourcrates is right, the IVA term is normally extended. Good luck,


Laura
@natdebtline

Nichh84

Hi

What I don't understand is how much debt I am meant to be writing off?
I am meant to be paying 31p / £
My partner 28p /£

We need to remortgage at 85% - How much of my equity do I need to pay in?

Apologies if sounding a bit thick, :eek: I keep asking our IVA company and they send me a blanket email which I think is a template saying the same thing.

Thanks

memberme

Hi,

the pence in the pound bit is what was initially part of the proposal to creditors and gave an indication of the minimum they should expect.

If the LTV of your property suggests it is feasible to ask you to release some of that money then depending on the mortgage/LTV and total IVA owing amounts, you can be asked to release as much as possible towards the entire debt to the creditors.

Usually remortgaging isn't a viable option due to your credit rating and IVA situation. If your LTV is close and your IP is happy like mine was for you to value your property using local estate agents, then try and get low valuations to negate the use of the property.

If you have a lot of asset in the property and can't secure a mortgage, you will usually be asked to extend the IVA for a year.
I have also heard of some IP's asking poeple to get high interest rate loans as an unpopular alternative but the extension is the norm.

Read the fine print towards the back of your initial agreement and it'll all be in there.

best wishes