If I sold my current house would I be able to use the proceeds to seriously downsize or would I have to pay outstanding iva first in which case I would then be unable to get a mortgage. If I had no mortgage then I would be in a position to fully repay my debts.
If you sell up, thereby releasing equity, the IVA will want an amount to cover the balance of the full original debt plus fees and possible statutory interest.
You could, however, put a different slant on the situation by offering to sell up in order to make a full and final offer of the balance of your IVA payments, plus 12 months to cover equity in lieu.
The point here being ---- if you go ahead and sell, they are entitled to the proceeds.
If you offer to sell for a full and final, they get their money early and in a useful lump. If they refuse you don't sell, they then have to wait for their money in dribs and drabs.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
