How does owning your own home affect iva's?

[cryptic]

How does owning your own home affect iva's?
If you wish to reduce payments by arranged reduced amounts or take out an iva can companies force you to mortgage your home?

[aguise]

Hi It depends on your level of debt ,how much equity you have in your house. If elligible for an iva then it is usual for some equity to be released usually in the fourth year, but you need to be insolvent, if you have a reasonable amount of equity you may be able to remortgage and make an offer of one large single payment via iva. You will need to post more of your circumstances for others to help.

Ang

[MelanieGiles]

Hi cryptic and welcome to the forum

If you have equity in your property, then your creditors will expect to share some of that money. It is most usual to expect to have to remortgage during the final year of the IVA, and release equity available by taking a mortgage usually of up to 85% loan to value. You could also do this up front, or if you have sufficient equity it may be possible to effect a "full and final" IVA just by relying on an equity release.

I am not sure what you mean by the comment regarding reduced payments - please clarify. And no-one can force you to mortgage your property - although the creditors have the power to reject your IVA proposals, so you will need to come up with something that tempts them sufficiently to accept.

Can I ask how much you owe to your creditors, the value of your house and any equity you have available.

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