propsing an iva when you are in negative equity

[hopefull1]

Hi

If you are in negative equity can you still propose an Iva even if oh is going br. From what i can understand as well is when you go br when you are in negative equity you will definately keep the house provided that you can maintain your mortgage payments.

Many thanks

[MelanieGiles]

Yes you can, and your assumption about negative equity is correct so long as you can continue to pay the mortgage payments. The OR will probably encourage you to purchase your partner's beneficial interest in the property for a nominal sum of £1, thus removing the property from the bankruptcy estate.

[hopefull1]

Hi Melanie

Thanks again for your response Could you please just clarify one point for me even if you could rent cheaper than your mortgage payment can the or force you to do this even if you are in neagtive equity or is your mortgage payment not taken into account except when working out whether you have too pay an ip or not,

thanks again

[MelanieGiles]

No - the OR is very unlikely to comment on the level of your mortgage payments to be honest.

[hopefull1]

Hi Melanie

Thanks again just making sure that I have understood your reply correctly that they can not make you rent even if this meant a greater return for the creditors.

I just want too make sure as it is a big decision to go br.

You are a credit to this forum as you always give people professional and honest advice and in doing so put so many minds at ease.

No - the OR is very unlikely to comment on the level of your mortgage payments to be honest.

[MelanieGiles]

Thanks Hopeful - I try my best!

Nothing is impossible, but I feel that the chance of getting the OR's examiner to say that you have to sell up because renting would be cheaper would be very unlikely and difficult for them to enforce.

[hopefull1]

Hi Melanie

Thanks again for your reply you have been very helpfull as our mortagage is only about 30% of our combined wage and didn't seem to cause any great alarm bells when we are trying to get an iva which is purely down to one creditor who seems adament that they want a charging order or if they could be persuaded to come on board an iva might still be an option?

Just another quick question if they did decide that the mortgage was high am I correct in thinking that they would have to base the rental figures on a property very similar to what we are currently in an the location as my son attends the local school and has already had to be move aleady.

Sorry for the long blog but it is such a big decision to make I want to make sure that I can address my concerns before I take the next big step.

Many thanks