Hi my husband and I currently have 2 IVAs which totaled around 80k at the start. We are now about 17 months in and he pays 900 a month I pay 950 a month but we are so stressed with it all it's causes us issues. We constantly seem to have bad luck like car damage, boiler replacement etc and although we never go out or do anything we still struggle every month and that's without Xmas kids expenses etc. We really want to pay it off and end all the stress but our IVA company say that if we sell our house the equity won't be enough. We worked out that we still owe around 50k till the end of payments yet equity is about 80k so don't understand it. Would we be penalized for selling the house? I can't live with the stress any more and need a fresh start. What's the best thing to do?
If you pay at the current rate (with an extra 12 months for equity) the creditors are expecting to see a further 100,000. It is possible that they would accept a full and final offer of £80,000 -- but to do this using the house sale has to be handled carefully. If you just sell up, they will want, and be entitled to take, all of the proceeds and have the IVA continue until such time as you pay the full original debt, plus fees and possible statutory interest. You could offer to sell the house for the purposes of making a full and final offer, on the understanding that, if the offer is rejected you will not sell.
To make full repayment (settlement as opposed to a F&F) would need in the region of £95,000 to cover debt and fees plus (currently) around £12,000 interest (and rising).
There is likely to be a restriction on the house, so you would not be able to sell without your IP's permission.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Your figures seem to be wrong somewhere. If there are 43 months left at £1850 between you this means there is almost £80,000 to repay even without any extension or equity release unless the payments are due to reduce. Can you explain why you think there is only £50,000 left to pay.
