Will it be better to sell house before starting an IVA ?

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Mary.07

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Post by Mary.07 » Mon Aug 18, 2014 2:53 pm
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?
 
 

luluj

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Post by luluj » Mon Aug 18, 2014 6:55 pm
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.
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UpToMyNeckInIt

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Post by UpToMyNeckInIt » Mon Aug 18, 2014 9:35 pm
...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.
 
 

Mary.07

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Post by Mary.07 » Mon Aug 18, 2014 11:31 pm
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.
 
 

Michael Peoples

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Post by Michael Peoples » Tue Aug 19, 2014 11:54 am
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.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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