I'm thinking of applying for an IVA, I have a house & mortgage which a family member wants to buy from me, however he wants to wait until next year to buy it. If I get an IVA now how will it affect me selling the house? The mortgage was initially 100k with approx. 70k still outstanding. The value of the house is probably around the 70K mark now due to property value decreasing. I am keen to get started with the IVA. Would I be better to get the house sold to my brother before it starts or will it make any difference as there is no profit in the sale?
If the house holds no equity I cannot see it making a difference whether you sell it now or in a years time. The issue you will have is once in an IVA a restriction will be placed on your property and you will need to seek your IP approval for selling it etc.
Personally I would seek professional advice from one or two of the IPs who post on this forum so that you can make an informed decision.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
...option 3 is to sell the house, and as you then have no assets to worry about protecting (unless your job/other circumstances prevents it), go bankrupt.
Might work out cheaper in the long run.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
UptoMyneckinit I have considered bankruptcy, however I have rented my house temporarily to my brother (to cover mortgage payments) & am currently living with my parents. I worry that it would then affect them if I went down that road. Last thing I want is to put their home or belongings in jeopardy.
If you have agreed to sell the property at full market value then the property can be excluded from the IVA. It can be mentioned in the proposal what is happening but creditors make look for an up to date valuation if the sale drags on and this could lead to a higher price being paid.