would i lose my home ?

[t75]

hi if i went with an iva would i lose my home?

[Adam Davies]

Hi
No,as long as you kept up with the mortgage/secured loan payments
Regards

[Lisa2009]

You would however, be asked to release some of the equity. Probably in the 4th year.

[MelanieGiles]

I am assuming that you are a property owner? If so, the other posters are largely correct that you are unlikely to lose your home - but if you are living in a property of excessive value, with a high mortgage which is disproportionate to your requirements, you may be asked to sell the property and downgrade for the benefit of creditors.

Thankfully I see this rarely.

[Adam Davies]

Hi
Strange that in bankruptcy Mel this is not an area that causes the OR any concern yet in an IVA it causes creditors great concern.
Another reason why bankruptcy seems more favourable,on paper,than an IVA when comparing them.
Surely an IVA should be made easier to obtain considering the far better return that it gives to creditors over bankruptcy ?
Regards

[MelanieGiles]

That is because it is creditors who call the tune in IVAs, whilst having absolutely no say-so under bankruptcy proceedings. And I find that little gem even stranger!!!

Sadly Andy, the commercial reasons for proposing an IVA over other options are diminishing as the creditor squeeze on IVA allowances and criteria continues. Things are bound to change when the lenders start realising that their bankrutpcy numbers are increasing, but the wheels of change move very slowly in a lot of quarters.

[Adam Davies]

Hi
Yes the criterea for IVAs seems to be changing all the time,certainly it seems harder to obtain an IVA than it did two or three years ago.Still can't understand why creditors shy away from IVAs other than the fact that they know that the vast majority of people who fail to have an IVA agreed will muddle on with a lenghy DMP rather than opt for bankruptcy,although I do think that this is changing slowly but surely.
Am I right in thinking Mel that if you propose a Scottish Trust Deed and it is declined that bankruptcy is automatic ? If so I wonder how IVAs would be viewed by creditors if an automatic bankruptcy followed a rejection of the IVA at the creditors meeting ?
Regards

I think

[MelanieGiles]

You are correct about the Scottish system Andy, and you make a very good point about how attitudes would change if this was adopted "down South"!

This is probably why the minimum dividend criteria for a PTD is generally set around 10p in the £.

[David Mond]

I honestly believe with the new current CCCS guidelines on allowances and the current attitude of the majority of creditors there are more IVA's now being passed. It depends on whether the appropriate advice is given in accordance with the IVA Protocol.