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can you repay the balance of an iva early. Can you sell your home while you have an IVA

Hi matt.b

You can repay the balance of an IVA early - it depends on how long you have been in your IVA. You need to check your IVA wording regarding a F & F - some have wording in them saying that you may not settle within the first 24 months of the IVA.

You can sell your home whilst you are in an IVA - you need to speak to your IP about this as they have no doubt asked you to sign an RX1 form which means that the house equity will be there to pay your creditors the maximum of your debt.

I suggest you get in touch with your IP and put the scenario to them. If you are looking to "downsize" by buying a smaller property thereby reducing your mortgage payments , remember you need to have a 15% deposit and you would need to consult a broker who works within the sub-prime market as you will have difficulty obtaining a mortgage from high street banks with good interest rates whilst you are in an IVA.

Hope this helps

Sue

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This will depend upon the way your property was treated within the IVA. If you have a fourth or final year revaluation provision to raise equity then, creditors may be unhappy to support an early conclusion on grounds that they could continue to collect your contributions and then get potentially a higher equity release in a couple of years time. If, however, the property was excluded from the arrangment, you are free to sell it and make an offer to settle early.

Liaise with your IP and take advice on this point directly.

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

Good morning,

It is possible that an individual can finish an IVA early with either an equity release.

The best way forward would be to contact your I.P and start discussing the possibility of making an offer to your creditors.

Kind regards,


Julia Simavi

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