What happens to unsecure loan on mortgage, when IVA is finished.

DorisTrousers

memberme wrote: »

Doing the extra year depends on your contract.

I was with the now defunct ClearDebt and IP was Mr Mond who fought hard for many of the improvements made to contracts over the years.

I can assure you that the firm in question is very much alive and kicking, as is the eponymous Mr Mond.

memberme

I am aware the firm is alive and kicking but since December 2015 they had stopped dealing with IVA's and sent the ones they had on to other parties.

The company is defo still around, but I'm not sure if they have started taking on new IVA's yet.

I'm also sure that Mr Mond is also/

Concerned75

After the first few months, my IP called me to say an extra year had been added on to my arrangement, but I think when you phone IVA companies, different people answer the phone and give you a general answer as they don't personally know all your details.
There isn't any equity in my home; at least not within the 5 years since the IVA.
I had to remortgage it in the past and it wasn't worth much then.
If there was equity in the property, for a debt of 15K, the mortgage company would surely have look at an equity option over an IVA?

memberme

Hi,

seems strange they told you after a few months you had an extra year. That should have been stated at the beginning, that it was part of the requirements of such as NRAM to accept in respect of the unsecured part or at some stage prior to the initial creditors meeting that your IP thought that was the best way to achieve success. To tell you a few months later raises an eyebrow.

regarding your equity release, it all depends what you contract says.
many companies insist on a year added if you can't release equity or even if you don't have any equity. My companies view was that if you have no equity how can you justify adding a year as an alternative to the zero possible equity.

It will state (clearly or otherwise) in your paperwork somewhere, but seems a lot of hassle for 15K

Concerned75

That's what I was thinking. It is a lot of hassle for such a small amount. Are Natwest and NRAM that money grabbing?

memberme

Not really sure.

I was advised, and yes I agreed, to add another year as part of the initial submission to creditors as NRAM was one of my bigger creditors and apparently 6 years appeases them.

As it turned out, I found out later, that NRAM never voted so it went ahead on majority decision without them.

Who knows you see. I guess at that stage when you feel very vulnerable, you go with anything and consider the small print later.

Concerned75

That's very true. IVAs are usually suggested to people in a vulnerable state, because the fear of not paying up with consequences if you don't, makes you the perfect debtor without having to chase you for the money.
That said, I also strongly believe that if you owe less than £20k, a long term health condition or an intermittent work pattern; no sick pay etc.., you shouldn't be eligible to be in an IVA.
They don't effectively work without yearly stress and worry unless you have a steady good job with benefits and a consistent rate of pay.
A month to month debt management scheme should be devised instead and a brief circumstances form could be submitted each month so your payments alter accordingly and immediately.