Hi Ray and welcome.
Single payment or one off IVAs are quite common where there is an asset such as equity and no income. Creditors will normally allow relocation costs and deposit/rent in advance payments to be retained from any equity released.
The return to creditors is usually much higher than in bankruptcy particularly as you could obtain a better price than would be achieved in an auction following repossession.
Creditors will normally allow six months for the sale to take place after which time the property may have to go auction if there is no sale agreed. However, even if the property achieves less than originally predicted, creditors will invariably accept the reduction as you had tried your best. There is little else that someone can do to repay creditors than to sell their home.
Speak to a couple of IPs to find out what other options may be available to you given all the facts. Good luck and keep posting.
There are probably quite a few in yellow pages but go to iva.com for a full listing of IPs. Ensure that there is no charge for the initial consultation and that the IP fees will be drawn from the sale proceeds. The initial equiry is usually done over the telephone and a face to face meeting arranged at a later time.
how does a Full & Final IVA work & can this be done with a promise of excalating profit in an invwestment that will come at an unpredicted time in the future ??
A full and final is based on assets being available immediately or within a short period of time. Investments can go down as well as up so to base an offer on an estimated future value would be risky. If the investment[such as an endowment policy] had a guaranteed minimum value and early surrender would lead to huge exit penalties being incurred, creditors may feel it worthwile waiting until the policy matured.
I have reversion properties that at the moment are not worth a lot but could be worth £900,000 when the elderly tenants die - trouble is this is at an unpredictable date - also these properties need to be fed with equity in the way of a pension to the tenants ??????
I do not fully understand what you mean. If these properties have protected tenants then one or more could be sold at auction to investors who would be happy to sit back and wait. If however, these properties were purchased from the owners in return for a monthly retirement income until death, then the same would apply in that a specialist auctioneer could give them a value.
There was a case in France where a woman Jeanne Calment sold her apartment for an income of 2,500 francs a month until she died. She was 90 at the time and the lawyer who bought the property died before she did and his estate remained liable. When she eventually died at the age of 122 she was the oldest woman in France and the lawyer's estate was almost bankrupt.
What debts do you have and what are your contractual liabilities to the tenants?
