advised to go ahead with an iva

[shelley]

hi,i have been advised to go ahead with an iva.f i go ahead how does this affect my future credit i need?i rent from my father but he wants to sign the flat over to me so th morgage will be in my name and may still have his on it, this will take a few months. if i have already started iva proceedings or even completed and agreed a 5 year plan before my father decide to do it, how does this affect me?

[iva_squirrel]

Good evening Shelley,

Welcome to the forum.


You are not instructed further credit whilst you are in an IVA because you are working to a strict budget.

You are free to apply for credit after your IVA is completed. To ensure your file is updated send a copy of your completion letter (from your supervisor) to both credit reference agencies. All of of your debts covered by the IVA should be marked as satisfied by each original creditor when your IVA is completed.

If your father signs over the house to your name before or during an IVA, your home will be safe.

One of the main benefits of an IVA is that your home is always protected. However, if you do have significant equity, this will be released.

Typically, the release of equity will happen in the 3rd or 4th year of the agreement and your IVA will not need to run into the 5th year.

I would perhaps suggest your father would sign the property over to your name once you are debt free but I would really ask Melanie Giles for her advice. I am sure you will be getting a reply from her very shortly.

Kind regards,


Julia


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[123debtsolutions]

Hi Shelley

This may not be as straight forward as you think, as a gifted property could be taken into account within the IVA.
I would need more info on the proposed property transfer. E.g. Value? How it is to be transferred?

One other question is could this transfer wait until the IVA is complete?

There are companies now offering so called "IVA Day" mortgages, essentially it is a mortgage whilst in an IVA. Of course you will no doubt pay a higher APR so I would strongly advise looking into this before going ahead.

Good Luck

Lee
www.123debtsolutions.co.uk - 08000 114 123

[MelanieGiles]

Hi Shelley

Squirrel is absolutely correct - I would certainly not take ownership of this property whilst you are in an IVA. If the IVA fails, for whatever reason, then you may find you have to go bankrupt and the asset will be lost under the bankruptcy proceedings.

My advice is carry on renting from your Dad, and effect the transfer once the IVA has concluded.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk