can a time share be included in the IVA?

[tracey.m]

We also have a time share which we are still paying each month. Will this be included in the IVA or will this be considered as another mortgage? Or, would we have to sell this before we take out an IVA? IF we were unable to sell this (we have looked into this before and the place where we bought the timeshare did not want to buy this back), what would then happen?

[MelanieGiles]

Hi tracey

If the timeshare is an asset then it must be disclosed on your IVA statement of affairs.

I have come across this situation many times, and generally find that timeshare properties are worth little more than the loans taken out to purchase them. They are also difficult to sell second-hand, and the selling company will retain a large commission even if they do manage to find a buyer.

You firstly need to get the timeshare valued to see if it is worth selling. Talk to the resort owners who will be able to give you some idea of the prices they are currently selling for.

Under IVA proceedings, creditors will not expect you to continue making the payments under your loan, unless this provides them with some value and this is unlikely. I suggest that the best way forward is to try and sell the property, but stop making the ongoing payments. This may well result in the time-share being taken from you by the loan company - but as it is probably worth little or nothing there is nothing really lost.

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

[123debtsolutions]

This still needs to be declared in the IVA proposal and in most cases it will be untouched.
I suggest when you carry out your initial assessment you decare it and the IP will advise accordingly.

Good Luck

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