Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By James Carlton
#472472 Hi, have a question regarding equity release at end of IVA.

I understand an IVA arrangement is an INDIVIDUAL arrangement. Therefore can the co-owner of my property, my wife, who will not be in an IVA, be forced to re-mortgage at the end of my IVA. Presumably a re-mortgage would require both of our say-so. My question is what happens if the co-owner decides they are not prepared to enter into a re-mortgage?
User avatar
By JaneClack
#472474 It is an individual voluntary arrangement but if you are asked to release equity and it is possible to do so to finish your IVA - which it will state in the proposals - then the money will need to be paid in. Whether it is from a remortgage or whatever will depend on the best way to get the funds. You would need to speak to your supervisor in the IVA - your wife could refuse to remortgage (if in fact you are both able to) but then your IVA could well fail.
By James Carlton
#472481 Thank you Sarah, all understood.

With a re-mortgage application being hardly likely to be successful while in IVA, I understand that the IVA can be extended, usually by a year.

Therefore my next questions is, would this always be just one year and then once payments have been made for this year the IVA is complete.

Or, can it be insisted that the IVA be extended for several years until the original debt is fully paid? i.e. meaning that I would have paid as much as if I'd simply paid the debt off and in effect none of it has been "written off".
User avatar
By JaneClack
#472482 Basically this will be set out in the proposals.

Generally one would be asked to remortgage in month 54 of the IVA. If this is not possible due to being turned down, a remortgage taking you past retirement age and other things which are too many to be described here, then the IVA can be extended up to one year if it is a bog standard IVA under the protocol.

As you are now geting into the realms of specific IVA detail I would suggest you now contact one of the free providers of money advice such as Payplan, Step Change or National Debtline. You should also go to the Money Advice Service website as this is a perfect entry point for information.

You do need more advice than we can provide now especially as your original threads were about bankruptcy. You need to be aware of all options and have done a financial statement so you can be advised of all suitable options and the pros and cons.

Good luck.