Two houses in an IVA.

[Terry Henry]

If i enter into an IVA could i still keep my two properties?

[Adam Davies]

Hi
If the second property was rented out and making you money then yes.However you may be required to release equity from one/both in the fourth year of our IVA.
Is the equity in both houses more than your personal unsecured debt ?
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Terry Henry]

The two properties are my own and not used for renting. I brought my second house a year ago and has very liitle or any equity. The house i live in has equity but not more than my debt.

[Adam Davies]

Hi
Why do you need two houses ?
You would not be able to keep the second house unless you can show that you would be worse off by selling it[presuming you use it for work ?] You would be required to sell it and put any equity into your IVA.You would then be able to use the money that you were paying for the mortgage to repay your creditors through an IVA,if accepted.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Terry Henry]

Okay so what if i were to rent out one of the houses, could that work and would all the profit of the rent i could make have to go into the IVA?

[Adam Davies]

Hi
Yes any rent you make above your mortage payments and costs would form part of your income and hence disposible income.The whole of your disposible income is paid into an IVA.
Would you be able to make your contractual payments on your unsecured debts if you rented it out ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Terry Henry]

I would still struggle to make my monthly contractual payments to my creditors if i rent.

Would have to show how much rent i am charging the loggers if i went into an IVA?

[Adam Davies]

Hi
Yes,you would have to disclose all your financial connections.
Can you post details of your total unsecured debts and disposible income once you rent out the property ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

The reality here, is that creditors are unlikely to leave a debtor with an investment property, unless they were directly going to benefit from the rental profit, and these marging are getting greatly squeezed due to higher mortgage interest rates. I think that you would have to face selling the second property if an IVA is to be a viable option for you. How much equity is there available in each property now?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp