if I go into an IVA can i be made to sell my house

[rex]

I currently owe £76k on various credit cards, I do own my own home which i purchased for £200k market value on my property is £225k, if i choose to go into an IVA can i be made to sell my house?

[coco]

Hi Rex,

Under IVA your home is protected as long as the IVA payments are made and the creditors or yourself do not petition for BR, however you will be asked to release the equity in the 4th year (i think this is correct).




51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[Oliver]

Hello Rex

If your IVA proposal is accepted by your creditors then your residential home will be safe.

As Coco correctly states, you will need to keep up with your IVA payments and you will potentially have to release equity from your property. The timing and details of this release will be decided by your Insolvency Practitioner.





Best Regards
Oliver

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

[allan.f]

I have a condition to release equity in the 4th year.
How does this work,will I have to remortgage?I am a co-owner and the other person is not tied into my IVA so I assume there will only be half of the equity available.Will they want all my available equity or will they settle for a lower sum?I am concerned that in the 4th year I will be too stretched to increase my outgoings to service extra borrowing.I don't want to consider a sale as an option.
Allan

[MelanieGiles]

Hi Rex and Allan

Rex - your IVA will generally have to include the equity in the property (or at least your share if it is jointly owned). I always try and encourage my clients to do this at the beginning of the IVA if possible, which avoids the need for a fourth year revaluation. Your home is therefore "safe" so long as you do not default on your IVA payments.

Allan - I am suprised that your IP did not discuss the implications of this modification with you at the beginning of your IVA. Do you mean that your co-owner (presumably your partner/spouse) is unaware of the requirement for you to raise this money?

The creditors don't really mind where the money comes from, so long as it can be raised by either third party contribution, remortgage or sale. As you will not be paying IVA contributions any more, I question your point about being unable to service additional borrowings. It may be possible for creditors to accept a lump sum of lower than your share of the equity, depending upon your actual circumstances at that time. But only your share of the equity needs to be raised.

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