can negative equity be added to IVA

[markyboy]

I have an IVA, when I took out the IVA I owned a property which was placed on the market with a hope of making some profit to add into the IVA. It has finally sold after a year and has left a minus balence of £6500. Can this be added into my IVA ?

[go_4_broke]

Hi marky - couple of questions 4 u. . .

Who has the £6500 ended up being owed to?

Was the property sale included in the IVA from the start?

-Best

'5 years sticking my head into the Lion's mouth of debt !'

[markyboy]

Hi.

The total amount owed is to Northern Rock (mortgate lender), the property was mentioned in the iva but only mentions that once costs of sale and secured creditors have been paid I will make outstanding funds available to the IVA. It mentions the amount can only be estimated.

[go_4_broke]

Thanks for that marky.

I can't answer your question but the information should help others to do so.

-Best



'5 years sticking my head into the Lion's mouth of debt !'

[MelanieGiles]

Hi markyboy

I suggest that you get your IP to contact Northern Rock to see if they are prepared to join into your IVA and receive a dividend alongside the other creditors. If they agree to this, your other creditors will have to be informed, and you will probably need to make additional payments to ensure that the dividend originally pledged is eventually returned.

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