Hi
We are going to start an IVA shortly and have £60000 in debt, if we choose to sell the house while in an IVA will they take all the equity which is around £30000?
Or is it best not sell while in an IVA so we don't lose the equity?
You will probably find that you will not be able to sell your house without the creditors permission whilst in an iva.
I don't know how much equity they would take, one of the technical experts will advise on that.
If you don't sell, you will more than likely have the 4th year clause. This means that you have to try and remortgage in your 4th year, and a certain percentage of the equity paid across to your IVA.
If you can't remortgage,then usually the IVA continues for a further 12 months
Sharing from experiences of dealing with debt
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
If you wish to sell the property whilst in an IVA, this can only be with your Supervisor's permission and you may also need the IVA to be formally varied.
Given that you will be agreeing to have your property revalued during the final year of the IVA, with the requirement to raise equity based upon 85% loan to value, it may follow that the Supervisor can put up a case for you to retain up to 15% of the sale proceeds depending upon your circumstances.
That will be 15% each of your individual equitable interest
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.
