My ex husband and i, entered into a iva with debt free direct, 4 years and 3 months ago. we are due to complete in nov 09. We have sold our house and would like to know if we are able to pay, solicitors,his mum for lending us the money to clear arrears on iva, so it didnt fail, and to allow money for myself and ex husband to set up new homes, in rented accomadation,and to furnish the accomadation, and settle the iva after all these expenses are accounted for. We anticipate offering between 3 and 4,000 to settle and finish iva, would this be acceptable. To date they have recieved about 14,500. The total debt being 32,000.The offer would be more, if the iva was to run to the end, as over the next 9 months they would recieve, 2,600. Also is the money from the sale released to us, or to the supervisor of the iva.could you please advise.
Was the property included in your IVA at all - ie did you pledge to introduce a lump sum during the final year of the IVA? If not, then the sale proceeds are yours to do as you like - and if this enables you to offer an early settlement of the IVA then this is a bonus.
Thankyou for your prompt reply. I know that in may we were supposed to remorgaged the property, to try and release some equity to settle the iva early. The house was valued at £156,000 when the iva started, and has been sold for £107,000. We are currently in morgage arrears of about £2,000, but have just about kept the iva going.
I will ask to see the contract that was drawn up, and i desperately hope that we didnt agree to that, and only agreed to remorage the property, a remorgage at 95% would only have allowed us to borrow £4,000 more i think, Thanks again for your advise
I think your offer of early settlement would be acceptable however that would be subject to seeing the terms of your IVA which was meant to release equity into the pot but did not and what were the alternatives if that did not happen? Discuss with your supervisor (IP) and he/she should advise you best.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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