Does IVA prevent the selling of a house, or does it mean permission ?

[Summer.08]

Cant remember now, my partner set up an IVA earlier this year, does this mean that he cant sell the house in the 5 yrs while he is in the IVA or does he simply have to ask for permission?

[MelanieGiles]

He needs to notify his IP of his intentions and they will assess whether this has any smpact for the IVA or creditors. Is he moving into rented accommodation?

[Summer.08]

Thanks Melanie for your prompt reply. He is not moving anywhere but we have discussed it but as far as he is aware he is not allowed to move as in sell the house & is stuck for a minimum of 5 yrs ??

[Niobe]

He will have a restriction on the property but other than that, unless there is anything in his paperwork, he should be able to sell if he wants to.

If he does sell then apart from retaining money for expenses and a possible deposit on rental property, any equity will be paid across to the IVA.

[Summer.08]

So can he not buy another house if selling the current one, say downsize ? Can he only go into rented ?
Guess he will be waiting until the 5 yrs is up then!

Thanks

[Niobe]

He is highly unlikely to be able to get another mortgage whilst in an IVA.

[Summer.08]

You are probably right, although he has been told that at the end of the 5 yrs he has to try and re-mortgage to use any possible equity back to the IVA. Thanks again.

[Niobe]

He will have to try and remortgage as do most of us. He is highly unlikely to be able to though.

He needs to check his paperwork to see what happens if he can't do so - the vast majority of us have to continue on for a further twelve months.