www.iva.co.uk

Hi

We are currently going through an IP for a one and final payment. The IP suggested we re-mortgage our house to 85% LTV which will release £6,000 to go towards the payment. We are considering selling our house and moving to a smaller property, still giving the £6,000 towards the one and fianl payment but then using the remainder as a deposit on a smaller house which will reduce our monthly bills. My question is will the creditors want all of the money if we sell our house leaving nothing for us to get a smaller property?

Thanks

Are you saying that you are being advised to put forward an IVA on the basis of a lump sum of £6,000 being introduced only? Or are there other assets also being raised?

I cannot see who an IVA will work, if only £6,000 is being offered, leaving you with 15% of your property value. Please post more information if you can.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Melanie

No we also have a rental property which we are selling and the equity in that is approx 24K so all of that is going in as well. The IP said that if possible they want to keep us in our home so we don't have to sell it but as my income has decreased by two thirds due to my son becoming ill and me having to find a job closer to home which is much more poorly paid than my previous job we literally have no disposable income after the bills are paid and we are worried if a big bill came along how we would pay it. We thought if we moved to a smaller property it would decrease our bill e.g council tax, mortgage etc

Aah that now makes sense. Perfectly reasonable for you to put forward an offer retaining your interest in your home, but downsizing seems a good idea for the future.

Best of luck with your IVA offer, and do let us know how you get on.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks Melanie. What a godsend this forum is, I only wish I had found it earlier. It helps to know there are other people going through the same thing and it also helps to read how people have got on and the advice given. I'll certainly keep everyone up to date with my case as it may help somebody else going forward