When you are in debt, Jan, there may always be a possibility that you could lose your house - for instance if the IVA were to fail. Providing that you keep up with your IVA payments, and you deal with the final year equity release provision properly during the final year, there should be no reason for your house to be affected.
You also have to compare what your debts are against what your equity is - so for example if your equity exceeds your debts you cannot enter into an IVA as you are solvent. A re-mortgage might help but depends on your disposable income and what offer can be made to creditors. Get all your facts to hand and give a ring to an IP and ask for advice based on your particular circumstances. Visit www.iva.com for reviews of many and select one or two to have a chat. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Wondering what would happen if someone is not 'balance sheet' insolvent as per David's example but is unable to meet minimum payments from income. Would they be precluded from entering an IVA ?
It would really depend on the facts of the case, the level of debt and how much the equity exceeded the debt. For example would the costs of selling the property mean that there would in fact not be enough money to repay the debt.
If there is more equity in the property than debt, the creditors would normally expect the property to be sold in order to pay off the debt. However there are circumstances where the creditors may be more sympathetic but they will want to see the property sold at some stage. An example might be where there is someone living in the property who is disabled and the property has been adapted for that person.
I have done IVAs for people who needed the protection of an IVA until they could find a buyer, or where the debt could be repaid in 3 years without the sale of the property. Protection was needed due to an outstanding bankruptcy petition or an application from a creditor for a charging order.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
