IVA AND REDUNDANCY

[rach7]

we are in yr 3 of 6 yr iva and hubby is facing imminent redundancy.we have a 50% shared ownership property which doesnt allow for remortgage.we have 2 kids and im 6 months pregnant so working for me isnt an option.we have already had one payment reduction so wont allow for another.if we went bankrupt would we lose our house with it being shared ownership,although there is equity in our share i dont think it would be enough to cover our total debts owed.

[rach7]

also would the iva take hubbys redundancy payout.

[Adam Davies]

Hi
Your house may be affected by bankrupcy,please post your equity details and unsecured debt details.I am not sure how a shared ownership house is dealt with in bankruptcy,hopefully Melanie or Catullus will be able to answer.
Your redundancy is for you to use whilst your husband looks for work but once he finds work you will need to take advice from your IP as to how it is dealt with.
Is the redundancy sufficient to offer a full and final settlement to your creditors ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[rach7]

our total debts with debt free direct is £58,120.83.we have been paying into the iva now for 3 yrs in november.total equity in our 50% share is approx £40-45k.the housing association will not allow for remortgage to end iva early.should we stuggle on for another 3 yrs or go bankrupt.we really do not want to lose our home.will the iva accept another payment change due to the redundancy.i dont think the payout will total more than £5k.we have already had the iva extended to the max of 6 years.

[Oliver]

You could discuss a variation in the payment amount with your IP.

If you go bankrupt it is likely that you will lose your house through it at some point because of the amount of equity you are sitting on.

Have you thought about potentially selling your house and offering a full and final IVA payment. It is likely that you would be able to use some of the proceeds of the sale to put down as a rental deposit for a new property.

Best Regards
Oliver

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

[rach7]

if we were to get 40k for our house what honestly is a figure that the iva is likely to accept in full and final settlement.

[rach7]

we had one payment variation already due to me having to give up work as i kept having recurrent miscarriages.would they consider another

[rach7]

also sorry for all the questions but if we decided to sell,would the iva company put a hold on payments until we sold or do we continue paying then offer a settlement figure when we have the funds from the sale.thankyou