How easy is it get an IVA living in France?

[m123]

now live in France, although I still have UK bank accounts and income. I also have UK debts of about £125,000 owed to the Inland Revenue, various bank loans and credit cards. How easy is it for me to get an IVA? Or is it not possible?

[MelanieGiles]

Hi m123 and welcome to the forum

It is not impossible to get an IVA if you live in France, and I have acted for a number of people in your situation over the last couple of years.

How would you fund the offer - ongoing contributions, asset realisations or a combination of both?

[m123]

Hi Melanie

Thanks for your reply. I still earn money through a UK business - I am self-employed - and would want to fund the IVA through that. The problem is that the amount I earn is substantially less than I need to repay my current debts.

I don't really have assets to realise. My only asset now is a house jointly owned with my wife, on which I have a French mortgage.

[MelanieGiles]

What equity is there in the property?

[m123]

Yes there is about £150,000, depending on the exchange rate, of which my share is £75,000 as the house is jointly owned by my wife. However, in France, equity release is not allowed - I already went down that route - and in any case, French law limits mortgage repayments to 35 per cent of income - and I am already at that limit.

[MelanieGiles]

With £75k of equity in the property, your creditors will expect to share some of that, so if you will not agree to sell the property to release your share a DMP is probably your best option - albeit with the level of debts you currently have this could be very long winded.

[m123]

Hi Melanie

Thanks very much for the comprehensive replies. I guess I need to find a way to release some equity, although it will not be easy.

[MelanieGiles]

If a sale is possible, you could offer an IVA based upon the introduction of a lump sum from you share of the equity which could run for a 12 month period. This can be done prior to the sale being effected, so long as it is entered into with the intention to release equity.