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Posted: Tue Oct 23, 2007 11:18 am
by Terry Henry
If i enter into an IVA could i still keep my two properties?
Posted: Tue Oct 23, 2007 11:44 am
by 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
Posted: Tue Oct 23, 2007 12:07 pm
by 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.
Posted: Tue Oct 23, 2007 12:20 pm
by 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
Posted: Tue Oct 23, 2007 12:49 pm
by 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?
Posted: Tue Oct 23, 2007 12:52 pm
by 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
Posted: Tue Oct 23, 2007 3:09 pm
by 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?
Posted: Tue Oct 23, 2007 3:18 pm
by 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
Posted: Tue Oct 23, 2007 3:19 pm
by 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