If you inherit a property during an IVA

[poetess]

If you inherit a property during the period of an IVA (that if sold could clear the IVA in full), what are the processes that you would need to follow?

[Adam Davies]

Hi
Contact your IP and advise them of the windfall.They will include this into your IVA and if it is enough,with the payments that you have already made,to clear your original debts,IP fees and statutory interest then your IVA will conclude
Regards

[poetess]

Thanks for that Andy, but as the inheritance is bricks and mortar (worth approximately double the IVA amount) and not cash, how will that work?

[Adam Davies]

Hi
You will still have to advise your IP and will almost certainly have to sell or raise money against it.
Remember your original debts are owed,not the reduced IVA amount.
Regards

[poetess]

Hi Andy
I realise that the full amount is payable and am not trying to wriggle out of that. I accept that the house needs to be sold and that is why I asked the original question about what are the processes?

Does my IP take control of this or am I left to organise the selling? I am quite concerned as the inheritance is a 50/50 split of 2 ajoined properties and a small amount of land. My sister-in-law and her family live in my 50% share at present and I really don't know what to do. The deeds at present have not yet been legally separated and I have as yet not inherited. Any thoughts????

[Adam Davies]

Hi
I am not suggesting that you are trying to wriggle out of your debts it's just that some people think that once an IVA is agreed that they then owe the equivelent of 60x the monthly payment and not the full original debts.
You will need to raise the money from the assets,it's only in bankruptcy that the OR would take control of this.
Have a chat with your IP and see what they have to say about our situation
Regards

[MelanieGiles]

You will need to explain your problem to the other beneficiaries, in the event that they do not wish to effect a quick sale of the property. Perhaps they might like to buy out your share, in the event that you do find yourself in this situation.

[poetess]

Thanks Melaine, but we have spoken to the other beneficiaries and offered them the option of buying out our share. Unfortunately they are unable to raise the cash. Does this mean that they will be forced to move out in order that the property is made ready for sale?

[MelanieGiles]

Then they will need to find some way of getting you your share - so if this involves a sale of the property I am afraid that this is what you are facing.