bankrupcy question.

[marky b]

we are in the final stages of proposing our iva through melanies team.
we have 10% equity in our house, would you have to sell your house or are you allowed to retain a certain amount.
everytime i think ive got my head sorted it starts spinning again.
also are the allowances the same iva vs br.
thanks guys.

[kallis3]

Hi,

With your IVA you don't have to sell your house, but you will be expected to release equity in year 4 by way of remortgage. If you can't manage that or the payments are more than 50% of your iva payments you normally find that you will continue for a further 12 months.

If you go bankrupt then it is likely the OR would want the equity in the house to be paid across, hopefully one of the experts can confirm or otherwise.

The allowances for bankruptcy are more generous than an IVA.

You are with a good IP and she would not be putting you forward for an IVA if she did not think there was a good chance of it being accepted.

[MelanieGiles]

We will discuss the implications of the IVA on your home in great depth with you at our final clearance meeting - but I feel sure that you would have already had the criteria explained to you by Tina or Melanie.

If you want to discuss this in more depth at an earlier stage, please give me a call.

[marky b]

i think were sure that the iva is the fairest option mel, im reading so many times where people think they may have taken the wrong option it gets you twitchy.
its like doing an exam and then reading it again and doubting your answers. lol

[MelanieGiles]

Sometimes you can read and listen to too much information. Go with your gut feeling - it is usually the best option - and with professional guidance I am sure it will take you to where you want to be.

[Julie]

Mark - listen to the advice of your IP...Mel's team wouldn't propose an IVA if they thought it wasn't the best option.

Write down any jitters you have and send them to Melanie - I'm sure she'll put your mind at rest [:)]