This is my first post!!
I have been in an IVA for 11 months and pay 300 for 48 months and 440 for 24 months when the IVA was agreed i had an interest in another property with my x wife other than the one i currently live in. The equity release clause relates to the property i currently reside in. The x wife now thinks she wants to sell this property which will release approx 23k in equity for my share. My IVA is for 76800 with a dividend of 28.16% the two creditors with the most debt are Northern rock and Barclays. Would an offer of 23k be a reasonable offer to use as a full and final settlement?. The property i live in currently with my partner has no equity and is currently on a home start mortgage with HSBC which will end next May and increase our payment by approx 400 pounds a month meaning we are unsure how we will afford this.
Hi
Are you sure that your second property is excluded from your IVA ? I would doubt this and would think that any equity will be treated as a windfall and paid into your IVA. However as your mortgage is due to increase by 400 pounds and will wipe out your DI your creditors may accept payments to date and the lump sum as full and final payment.
Was the mortgage increase not discussed with yout IP prior to starting your IVA ?
Regards
Why wasn't the interest in the second property declared in your IVA statement of affairs? If an asset has not been disclosed, the money received from the sale of same would be a windfall as Andy has alrady mentioned.
The asset was disclosed at the time of the IVA but was not included due to my children living at the address with my x wife and i was not expecting to obtain any equity for another seven years when my youngest child reaches 18. I did tell the IVA company about the mortgage but as i was already in a DMP and paying £300 a month they just seemed to decide that was fine and put the proposal forward which was acccepted. I am really concerned that the equity will just be paid to the IVA and then when the mortgage goes back up we will end up going bankrupt anyway but just further dowm the line in May.
Was this agreement under a specific order of the Court? If so, and creditors accepted the IVA on the basis that they agreed they would see no return from the property, then you are perfectly entitled to seek an early settlement, but my own view is that the money will be deemed to be a windfall. Are you struggling with the IVA payments at present? If not, there do not appear to be good grounds for early settlement.
The property was dealt with by the court. At the moment not struggling but when the mortgage increases by £400 in May next year which is the amount if the interest rates dont change then yes will find it very difficult to find extra money. What do you think might happen in may with my payment?
The fact that your mortgage payment is targeted to end in May is helpful to you, in that you may be able to demonstrate that an early settlement now using the exluded asset is to everyone's advantage - either way you need to discuss this with your own IP who has detailed knowledge of your case.
Hello, thankyou for your advice much appreciated. i have another question if i pay the 23000 as a windfall what do you think might be a reasonable offer for full and final settlement as my parents are willing to help?
