Currently 2.5 years in to a £26,000 iva agreement. Im in an unusual situation where if I was to sell my property today I would receive roughly £350,000; of this £174,000 would pay back mortgage in full and £26,000 to settle iva once and for all (plus added fees). Will I be able to keep my remaining equity (around £140,00) or will the creditors demand all of this money despite the (comparatively small) debt I started out with? I spoke to an IP today who could not give me any idea of how much added interest I would have to pay but did suggest it would be a large sum of my equity. I should mention I had a baby unexpectedly last year and currently have no partner or financial support so would ideally use this money to purchase a property outright to live and run a business from. Currently I am running at a loss of £100 a month and just want to get out of my iva and mortgage once and for all but am worried that that all of my equity will be taken leaving me homeless and unable to get a new mortgage.
You would need the IP's permission to sell the house but you would have to pay all of your debts (100p in the pound plus fees) not just what you agreed to pay into the IVA.
Speak to them and tell them you are struggling.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'm confused. Providing I had the agreement to sell the property would they demand £140,000+ of my property profit to cover an initial debt of £26,000 (without fees)? My IP suggested they could seek the £140,000 as part of their added interest but just don't understand how they could justify taking 5X my original debt sum.
Alternatively would I be better of delaying a potential house and filing a F&F proposal for £20,000 (family gift) and if it is accepted would I then keep all the profit from the house sale? PS. I need to move at some point in next year so regardless need to resolve this IVA situation
It is usual for you to pay only the full amount of the original debt (not the agreed IVA amount), IP fees and possible statutory interest.
With your circumstances of being at a loss inancially each month and needing to sell, try and talk with your IP to set a way forward.
I am under the impression if a F&F was accepted then the IVA would conclude, however, do hang around for an expert to answer, I'm just someone who has been in an IVA. All the best.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
had to sell my house dueing my iva after losing my job. and would have had to go BR.
After talking things over with my ip. I made a F&F offer from the sale of my home of payments per month x months left. this left enough over to start again.
IVA now over with and it was worth it.
now starting my life again,
Lesley is right - the IVA concludes if you make a full and final and it is accepted.
As regards the house, I believe you would be able to keep some funds back to allow for legal and estate agents fees and also expenses towards the move.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
