Good evening everyone. Can anyone help me. I am in my final year of IVA, however due to relationship breakdown and mortgage debt we handed the keys back to the building society. However they have just sold the house for £126000 but the outstanding mortgage was £193000... Yikes. I spoke to the IVA company and informed them and they advised that if the mortgage company were to chase for outstanding amount this could go into my IVA and extend it to year 6. This I am happy to do, but would it be the full amount or just my half of the mortgage debt? And what are the chances of say £75K plus being written into my IVA for the final year. My original IVA debt was only £51K and I am making payments of £441 per month. I cant sleep worrying about this.
Thanks
Sounds like good advice from your IP. The whole amount would go into your iva as you and your ex are both jointly and individually liable for the full amount. The iva would take care of your liability for the debt, but your ex will also need to take care of their liability as they sill be chased for whatever you don't pay. Good luck x
It will probably need another meeting of creditors as this will increase your debts substantially and reduce the dividend. The mortgage shortfall will be bound into the IVA but the other creditors need to agree to accept a reduction as it is a possible breach.
Your initial IVA would have listed the unsecured debts without the property shortfall. It normally states that if liabilities come in more than 10% higher than listed this is a default and another meeting needs called. While I doubt if creditors will fail the IVA they will need to be contacted and approve the changes.
