My husband owns a second home that this mother lives in rent free - which is partly why we have the problems we do. Can you get an IVA if you own two homes or is the only option to sell the second home?
I would imagine that any IP you sought to instruct would have some difficulty in you funding your mother-in-law's living costs on a free of charge basis. Were the property to be rented out at proper market rental, this money would be included as disposable income and paid over to creditors. Is the property subject to a mortgage, and who pays this?
You can definately have an IVA if you own two or more properties, but depending on the equity levels and the need to retain them, you may be asked to sell and certainly asked to explore remortgages at the end of the term.
If you have debts which you cannot currently afford to service at minimum contractual levels, it may be time to seek some impartial advice from an insolvency practitioner. This is always done on a free of charge basis, and I think you will gain much benefit from knowing exactly what options are open to you. Without addressing this, your financial situation could deteriorate even further.
Owning 2 homes should not stop you entering into an IVA.
If you do need a formal debt solution you should speak to an IP for a free initial discussion to establish what you may or may not have to put into an IVA.
If you do not want to include your properties (which may have equity to inject into the IVA) you will be expected to compensate your creditors with additional payments or higher payments.
If you and your husband have some disposable income which can be used to fund an IVA you may not have to sell at all. Or, have you considered a remortgage or equity release of one of the houses ?
It could be that once you are in an IVA the monthly payment plus the monthly remortgage or equity release may give you the breathing space you need.
Speak to an IP as soon as possible, face to face if possible, and they will be able to go through your circumstances and find a solution for you.
