Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By Squawk
#57576 I have just had an IVA accepted but was told 15 minutes before the creditors meeting there was some changes to my proposal that if agreed to, would be accepted.

When they were first read out to me I could not see the difference between an IVA and bankruptcy as it felt I would lose the house eventually anyway, but I was told that I would not lose the house as the creditors would accept my share of any additional funds I could get by remortgage on my share of the equity. So I said yes to the amendments. Now, reading them I'm not too sure, so what do you guys think?

"In the fourth year of the arrangement, an open market valuation of the property must be provided to the supervisor, together with a mortgage redemption figure. The debtor must obtain a minimum of two offers of remortgage which address the debtor's share of any equity therein and provide whichever offer provides the greatest return to creditors and 100% of the debtors share of such proceeds must immediately be paid into the arrangement"

and

"Should the debtor be unable to realise the equity, the supervisor shall call general meeting of creditors to consider the debtor's proposed alternatives"

Now, my share of the equity is going to be about £120000 with a current mortgage of £100000 and being 58 in 4 years time there is a snowballs chance in hell of me getting anything like an extra £120000 especially as any surplus income is going to the IVA!

So any ideas of what this means? Will they just accept what remortgage I can get or be able to demand I sell the house to raise the equity?