if you have no equity in your house

[bloomy]

what happens if you have no equity in your house because you have a second loan against your mortgage and after 5 years ant equity will be minimal

[pixie]

Are you currently in an iva? If so there should be clauses in there that cover this. Usually it will mean paying an extra year to cover it.

Pixie

[MelanieGiles]

If there is no equity in the property during the fifth year, then there will be no money to raise. Paying for a sixth year is generally being phased out.

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

[bloomy]

i am considering an IVA and have not yet applied. My wife and I have concerns over losing the house or having to sell the property at the end of the agreement.

[Lisa2009]

Its very unlikely you will lose the house. They may or may not add an equity release clause incase the house grows in value over the 5 years.
Before agreeing to an IVA, get the opinions of 2 or 3 different insolvency practitioners to ensure you are getting the very best advice,
www.iva.com gives you a list of insolvency practitioers and reviews.
Also Melanie Giles comes very highly recomended and her reviews are spot on.

[Adam Davies]

Hi Bloomy
Rest assured that in an IVA you keep your house as long as you keep up the mortgage and any secured payments on it.You will be required to release equity in year four or extend your IVA by a year if this is not possible.
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

[bloomy]

thanks for the help so far. I am slowly coming to terms with all the facts. Another question though,apologies, If i lose my job during the 5 year period of th IVA and providing that I have kept up with the payments what would be the worse case scenario be if i stuggled to find another job

[Adam Davies]

Hi
Worst case is that your IVA fails and you are back to square one.However creditors will normally allow a break for you to find work and they simply tag on the missed payments at the end.You can also look to see if your IP will allow you to take insurance to cover payments if you are made redundant.
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