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hi hope some one can help.we care currently 14 months into an iva and having made all payments.the iva is in my husbands name only.the iva is very difficult to pay at times.we are thinking of offering a full and final payment offer and were hoping to do this by selling our house which is jointly owned by both of us,paying of exsisting mortgage paying the iva of in full and final and using the absolute minimum left as a deposit for a much smaller house.can we do this? we have been told no we cant as it would be classed as a windfall and the creditors would take the large sum but the iva would continue to the end.we have a year 4 clause which is to remortgage bassed on the equity being 20,000 this was then halfed as they couldnt have my share leaving my husband to pay 7,688 out of his 10,000 once he had paid any fees for the re mortgage.how can selling our home and down grading be classed as a windfall when it is our biggest and only assest.can some one please help.confused

Hi nm and welcome to the forum

Your house sale cannot be deemed to be a windfall, as the property is already included in the IVA proposal - evidenced by the fourth year revaluation. Who has told you the sale would represent a windfall?

It is possible for you to offer a variation to the terms of your arrangement, providing that this gives the creditors at least the dividend that they originally expected. This will need to include your husband's half share of the equity raised from the sale, and possibly some of yours as well to make up for the future IVA contributions.

Ask your IP to provide you with a settlement figure, to see whether your idea is feasible.

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