www.iva.co.uk

Hi everyone! Just after some advice please...

We have a mortgage and a secured loan against our property and have been given a year to sell before we start payments on our IVA.

The trouble is that with the housing market as it is right now we have not had any offers on our property and the value is dropping like a stone!

With the secured loan we are going to get a payment protection payout in 3 years time of about 12k which we will not get if we sell the house and pay off the loan.

Do you think that if the housing market stays as it is or gets worse that Debt Free Direct would entertain us keeping our house until the payment comes in and reducing the amount that we have to pay in the meantime.

Obviously the payout would go to our creditors and therefore give them a nice return which they will not get if the house sells!

Your advice, as always, is welcomed!

That would have to be agreed by specific variation with your creditors, but in today's climate I would not expect creditors to object against this necessarily. Presumably the house was being sold to reduce your outgoings, and thus increase your IVA payments - so any variation will need to take that into account.

Spot on Melanie - with the mortgage and secured loan Debt Free Direct told us that our creditors would not accept an IVA - they did tell us this before they asked them though!
We still have 6 months to sell and so I think that it would be better to wait until after Christmas to start the ball rolling!

Hi Ian C,
I know how you feel - I am supposed to sell my house in the first six months, or around then depending on how long it takes.
In the current market I don't stand a chance of releasing the equity they reuire so I have asked to change that to at least year four.(If I get compensation for a head inkury I recieved in 2005 I hope to be able to give them that money and then possibly keep the house as they will have had the equity they agreed to). I have re-jigged my I & E and reckon I can still afford the agreed paynments so I am hoping my proposal will be accepted. I have a conference call next Tuesday to discuss it si I'll let you know how I get on.
Chin up and keep trying to findthe right solution for you,
Chardonnay

Good luck Chardonnay!! Hope that it all goes well for you... We actually got a call from the estate agents this morning asking us do reduce the price of the house! I don't think that this is going to happen!