my debt problems are now so serious

[angie17]

After a divorce and with huge spiralling debts I am considering an IVA. My old house is being sold to split the profits with my ex.Ideally I will then clear my debts and be left with a small profit. However my debt problems are now so serious and the house may not sell immediately that an iva may be the answer. What I would like to know is 1. Can you clear an IVA early (if my house sells) and 2. Can you get a mortgage after IVA as I will need somewhere to live?

[Adam Davies]

Hi
An IVA may mean that you will have to pay in most of your share of the house plus ongoing disposible income.
You can get another mortgage whilst in an IVA but you will need a 20% deposit plus your IPs permission.
It may be worth contacting an IP with a view to offering a full and final IVA with the proceeds of your house sale.
Regards

[MelanieGiles]

Hi Angie

You could offer a full and final settlement based IVA to creditors based upon your expected share of the sale proceeds, less an allowance for relocation costs, which could be proposed now even if the property is yet to be sold.

But I would only do this if you feel that you could not afford to pay creditors in full, and would be therefore technically insolvent - or you could not afford to make any ongoing repayments.