Hi we have been in an iva with debt free direct for 2 years 3 years in December. our debt is 24,000 now. our house is worth 250,000 / 270,000 our mortgage is 70,000 we need to sell our house as we have a 2 bedroom and I have 3 children so as you can imagine we have no room my eldest daughter is living with her nan temporarily as there's no room for her we can't cope with out her so as you can imagine we need to sell but we really don't understand all the jargon in our iva so what I'm asking is after paying our mortgage our equity would be around 180,000 would the iva take most of this? We're not sure how it works as we spoke to an advisor and she said you need to look at your paper work to see what would be added on top but we don't actually understand the paper work there's numbers all overy the place we really need some help in finding out what our options are I know there's some sort of order on the house but the advisor said it will be lifted to sell obviously if we pay all the iva. We have been looking to move across the country nearer family in wales where we can get a house worth of 90,000 but we would still need money to live off until we get jobs is this just a fantasy dream or could it actually happen?
You won't be able to get a mortgage at the moment and the IVA would take most of any equity up to 100% of your total debts plus feels and possible statutory interest.
You would be better off looking at renting at the moment as your credit rating is stuffed for six years regardless of whether you finish early or not.
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
Your IVA will end once you have paid over the full original debt, plus fees and statutory interest, this will come out of the equity ( less what you have paid so far) and the rest would be yours.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
if your debt is 24k then i take it fees ect on top would not exceed 20k and u can get a house in wales for 90k and you will still have change by my non expert reckoning and be mortgage free
full final paid over 29/2/16 cc arrived 12/4/16 its all over
On the assumption you have standard IVA terms then if you sell without an agreement in place beforehand with the creditors then all of your interest from the property sale will be paid into the IVA until the total debt plus statutory interest and costs have been paid in full.
Only then would you receive any surplus back.
Your only option would be to put forward a variation to creditors to sell the property and pay over some funds into the IVA and keep the balance however on the assumption you need more than this for a bigger property I can't see that this will help solve your particular dilemma unless you are able to move to a cheaper (but bigger)property in Wales as you have suggested and transfer the existing mortgage.
FYI even if you were able to settle the IVA with say a lump sum offer from a third party I don't think you will be able to remortgage for another 3.5 years but worth speaking to Ryan or Shaun on here to see if they have any ideas - they are the mortgage experts on the forum.
Last edited by Lisa Thomas on Mon Jun 13, 2016 10:35 am, edited 1 time in total.
