could we sell up

[andrea]

just wondering is it possible to sell up we have been in the iva for 11 months now would possibly come out with 20,000 equity and we pay back 18p in the pound.

[MelanieGiles]

You will have to ask this question of your supervisor, Andrea. The answer is possibly, but 18p in the £ is not a great return and if your original IVA was offering a much higher return then this is unlikely to be attractive to your creditors. Does your IVA have provision for a 4th year equity release?

If your Supervisor does think that this is a viable option he/she will put forward a variation proposal to your arrangement which will need to achieve the support of creditors voting at a creditors meeting. If you are left with surplus disposable income after the sale, they may want you to continue making repayments as well.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[andrea]

no this is the original we only pay 18p in the pound back i dont know what you mean

[MelanieGiles]

Ok Andrea,now it makes sense to me.

In the event that your property was not included in the original IVA - ie the 4th year revaluation and equity release, then if by selling the property now you would be able to effect a dividend of 18p I see no reason why creditors would not accept this. You may like to offer just a little higher, to make the offer tempting.

Take specific advice from your Supervisor with regard to this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[andrea]

in or iva it soes mention the fourth year but it also says 0 as they dont think there would be enough equity then but i know if we sell now we could come out with at least 20,000 does this make sense to you melanie and do you understand what i mean

[MelanieGiles]

Yes I do Andrea. But the fourth year valuation, means that your property is to be revalued during the fourth year, and that you will be required to raise a proportion of the equity at that time. You will need to check the exact terms of your own proposal.

So as creditors know that your property already has £20k worth of equity, they may not want to accept that now - especially as your dividend is so low. They may prefer to continue to collect contributions from you, and then get a lump sum at the end on top of all that.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[andrea]

sorry to keep asking questions but if there was 20,000 equity at the end what could they take off us

[andrea]

as mentioned, we have just dne nearly twelve months we pay back 18p in the pound would it be possible to sell the house there may be 20,000 equity do you think this would be enough as final settlement and would we be allowed to sell