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Just Joined

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Posted - 29 May 2020 :  22:17:28  Show Profile  Reply with Quote

Iím wondering if anyone would be able to give me some information in relation to the extension clause.

Background: my husband and I entered into an IVA in February 2006, we were told that there would be a 5 year duration. At around month 54 we were contacted by our IP to advise that we were to seek a mortgage valuation with the view to release equity as per the extension clause (which we were never actually aware of).

Obviously we were unable to release equity and our IVA term was subsequently extended for a further 2 years. I called to query this and was informed by the advisor that we had signed up to a 6 year IVA - we didnít! We certainly were not made aware of this term.

I have since researched and it would seem that the term can be negotiated by the creditors before the IVA is agreed. Since NRAM were one of our largest creditors, I am sure this is probably what happened. However, we never received any notification of this.

Also, if this was the case, I am confused as to why we were instructed to attempt equity release just before the 5 year term and not the 6 year term. Had this have been the case, due to house prices falling in our area, I am sure that we would have had less than the £5000 equity required to warrant the further year extension.

I have sought clarity from our IP with little success and have therefore submitted a subject access request in order to check over the original terms and conditions (7 years later I unfortunately can not find them).

I have read that IVAís that include NRAM as a creditor can be tricky. It just seems that there have been variations to the terms which we were not made aware of and Iím sure it should have been brought to our attention. Had we have known this could last 7 long years I am sure bankruptcy would have been a better option for us.

We made our final payment at the end of February and are currently waiting for our long awaited completion certificate.

Thank you for taking the time to read this #128522;

IVA Adviser
IVA Expert

809 Posts

Posted - 01 Jun 2020 :  09:10:58  Show Profile  Reply with Quote
Hi JLS3852.

I'm a little confused by the timeline here. I'm reading that you entered a potentially five year IVA in 2006 (which would have ended in 2011) but it was extended by two years - potentially now ending in 2013. I think you're saying that you made the last payment this year and are now waiting on a completion certificate. If this is correct, why has everything run on for so long?

You are correct that creditors can propose modifications to an IVA proposal, but an IVA provider shouldn't accept these requests without your consent. You might want to request evidence of your agreement to any modifications that were accepted.

Your IVA agreement will have set out the term of your IVA and what would happen if you could not release equity. You'll have signed this document to confirm your agreement to the terms. Getting hold of a copy of it should help to answer your questions in this area.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?Š      
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Just Joined

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Posted - 09 Jun 2020 :  10:55:04  Show Profile  Reply with Quote
Thank you for your response. I put the wrong date in the original message. It was 2013 we entered the IVA. I have requested all copies of contracts etc to check the details as per your suggestion. Thank you x
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