I would like to consider the IVA option

[tintin]

I would like to consider the IVA option because of my large debt problem but have a few queries which I don't seem to be able to find an answer to.
As I understand it, a potential final lump sum payment for an IVA can come from your equity in the mortgage. However, my mortgage is in joint names, i.e. me and my housemate (friend). My two questions are:
1. Can the creditors insist they take this equity, even though half is not mine and the mortgage is not solely in my name?
2. Can the creditors force us to remortgage our house and maybe onto an interest only mortgage, even though my friend does not want to change?

Thank you

[Lisa2009]

Only your share of the house equity would be affected

[Oliver]

In an IVA proposal your Creditors can not force you to do anything as it is an agreement between you both.

In an IVA you would only be expected to release as much of your equity as you can. Your friends equity will always be safe as your debts are nothing to do with them. This is the same in bankruptcy, but under this action the courts couls sell your house without your friend's permission and then simply give your friend their share of the house sale.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

You will not get an IVA accepted these days if you are not prepared to address the equity in your property during the final year. This is based upon a revaluation of the property and a remortage of 85% of the value, with you then releasing your share of the equity once the prior mortgage has been repaid. You will need to co-owners permission to do this.

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

[tintin]

Thanks Skint, Oliver and Melanie for your replies. This is definitely something I'll have to consider and I'll also have to talk to my friend before considering an IVA.

[iva.com]

Hello Tintin,

If you are considering an IVA you may find www.iva.com useful. We maintain a list of Insolvency Practitioners and IVA firms. We also have a number of reviews, that their clients have posted, which may be useful when deciding which firm to appoint.

Kind regards,
Terry Balfour
IVA.com

IVA.com - Comparing IVA firms by using consumer feedback.

Please rate your IVA firm or Insolvency Practitioner by reviewing them here: http://www.iva.com/submit_iva_review.asp