I have a number of personal loans and credit cards which are becoming unsustainable and I am considering my options. I also have 10 buy to let properties, 5 of which would be breaking even and 5 in negative equity, the 5 in negative I would also like to hand back. I have read extensively through other websites and posts on this website but can't get actual clarity on what would happen if I were to hand back the 5 properties. Some advice has stated that when the secured lenders are advised on the IVA they are not included because they are 'secured' and that they would be asked to 'rely on their security', by doing this the properties could be handed back with no further recourse on myself. Other advice has stated that they have the right to chase shortfall debt thereafter. Can someone please clarify?
Have no idea on this one I'm afraid. Have you actually spoken to an IP company?
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 a loan is secured then it is not included in the IVA as such, but the repayments allowed for in expenditure. When a property is handed back ( or repossessed if the creditors so wishes) any shortfall is then an unsecured loan and will be included in the IVA, assuming this has been agreed / allowed for at the outset. If not agreed the inclusion of the now unsecured loans could upset the balance of the IVA by unduly lowering the dividend and the IVA could be failed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
This is actually quite common and a way to tidy up a portfolio. The bad properties go back and the shortfalls included whereas the good ones are kept. The profits from the good ones help fund the IVA and equity can be addressed later.
