Iva help 7 February 2017 at 1:51PM in IVA & DRO 7 replies 1.7K views

Jfrancis21

I am near the end of my 6 th year of my iva. I was asked to remortgage due to equity clause. As unable to remortgage have been asked to oay a further 12 months taking it to a 7 year iva.

However there was a condition added to the iva by one of the creditors stating we should not make more than 72 payments.

I queried this with the iva company and they said it was "ambiguous " and would have to hold a creditors meeting to decide whether they would honour it. Surprisingly they said they wouldn't and I would have to pay the further 12 payments making it an 84 month iva.

I would like to know if it is legal for them to do this

mwarby

Did it start as a 6 year and equity release IVA ? If not when did it switch from the more normal 5 year and equity release ?

I'm not surprised the creditors decided it was ok by them to get more money

sourcrates

It's common practice I'm afraid, yes.

That's why it's always important you read the IVA paperwork so you know exactly what your signing up to.

Jfrancis21

It was a 5 year iva. They added a condition that we downgraded our car within first 12 months. As i needed the car for was unable to comply and therefore 12 minths was added.

I accept the equity clause my problem is with the condition that I should not pay more than 72 payments but I am in fact now paying 84 payments

Concerned75

IVAs are a minefield and unless you have good financial/contract etc...skills, you don't understand all the details there or not within your contract.
It seems to amaze me how these extended terms and payments come up as you get closer to completion.
I don't know of many properties that accumulate lots of equity within 6 years, as if you're property had lots of equity, surely this should have been considered as an financial payment before an IVA? Or have I got the wrong way of thinking here?

Jfrancis21

They reported no equity in the property until year 4 - then they just missed it off the report. All of sudden there is equity in the property!!!

Jfrancis21

I am still not clear on whether or not what they are doing is legal. If it was a condition set at the beginning of the IVA how can they then take a vote not to adhere to it. Doesn't seem right to me.

fatbelly

Put your complaint to them in writing and refer the result to the Complaints Gateway

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/individual-voluntary-arrangements/problems-with-an-individual-voluntary-arrangement/complaining-about-an-insolvency-practitioner/