second property at risk in IVA?

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dave47

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Post by dave47 » Sun Sep 28, 2008 5:39 am
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I own my house and have a second property due to be let out. Will my second property be put at risk if I enter into an IVA
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chardonnay

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Post by chardonnay » Sun Sep 28, 2008 9:00 am
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Hi Dave and welcome to the forum.
One of the experts will be along soon with advice for you. I'm not an expert, but I would think your second property is an asset and so would be included in your IVA. Any income you get from renting it would also have to be included in your I & E and your allowances would be worked out including that.
Sorry if that's not what you wanted to hear, but it's a hard life in an IVA and you need to be sure you pick the right solution for you.
Best wishes,
Chardonnay
Chardonnay
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Adam Davies

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Post by Adam Davies » Sun Sep 28, 2008 9:26 am
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Hi
As Chardonnay has said an IVA will not affect your having a second property as long as there is not a shortfall each month that you are having to subsidise.
You may be required to release equity from it during the IVA.
Regards
Andam Davies
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MelanieGiles

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Post by MelanieGiles » Sun Sep 28, 2008 10:44 am
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The most likely outcome, if it has equity, is that you will be asked to sell the property. Creditors are never keen to be gambling on you maintaining a tenant in the property, and would rather get a quick reward out of a sale.
Regards, Melanie Giles, Insolvency Practitioner
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