Hey tarad07, welcome to the forum. Yes, you can be a homeowner and apply for an IVA. If you want to post a few more details about your debt and if you have any equity then the technical experts can help you further. X
Just to agree with Viki, I have a mortgage and I am in an IVA
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
There is nothing at all to stop you applying for an IVA. It's not always as straight forward as you might think though. Believe it or not, the level of your income that you are paying to secured creditors can also have an affect on the options available to you
I think before you commit to an IVA you need to be made aware of all the alternatives that are available to you as it may well be that one of those alternatives may work better for you than an IVA.
Seek professional advice and have someone go through those alternatives with you first and then you will be in a better position to make an informed decision as to what you want to do. If someone recommends an IVA to you without referring you to your other options, I would recommend that you seek a second opinion.
An IVA is absolutely possible if you are a homeowner with a mortgage, but you will need to show that you can afford the mortgage payments which may be sensitive to interest rate changes - although hopefully for the next couple of years that will be downward rather than upward.
As Mrs Skint has also mentioned - it is a standard requirement these days to pledge to raise equity during the final year of the IVA, based upon a maximum borrowing of 85% loan to value.
I suggest that you have a chat with an insolveny practitioner, who can carefully explain to you all implications of being insolvent whilst owing a property and how to deal with the secured lender.
As Mrs Skint has also mentioned - it is a standard requirement these days to pledge to raise equity during the final year of the IVA, based upon a maximum borrowing of 85% loan to value.
Hello Melanie,
may I ask you a question? What happens if there is no equity worth drawing out at end of the fourth year because I think we are now in negative equity and the house value may not have risen enough in the time span involved.Do we have to pay the difference indefinetely?
Depends on what your IVA says - most current ones in the alternative as to negative equity or not able to re-mortgage in final year continue their contributions for 12 more months only (Protocol compliant cases)
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Only if that has been specifically modified in by creditors, which of course in itself was specifically moving cases away from being protocol compliant, and I do believe that creditors have stopped doing this now - as a result of much complaining by yous truly and others no doubt!
No, it is still in the Protocol compliant ones and currently the bankers reps still want it in
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi, thanks so much for all your responses. I am actually looking into this for a work colleague of my husband. This poor woman had a car accident a while ago and it wasn't expected she would pull through so her 'lovely' 20 year old daughter decided to max all her credit cards, take out loans in her name - even a secured one leaving her in this mess. She doesn't want to report her daughter for fraud which was my suggestion so I have been looking at options on her behalf, she is very worried about losing her home which has about 50-60% equity in it. None of the credit companies will agree to a reasonable payment plan so she has asked me to look for an insolvency practioner for her to speak to.
I would most definitly have reported her - daughter or not! What an awful time she has had of it, and I hope she is fully recovered from her accident.
What a good friend you are as well. Have a look on www.iva.com, they have lists and reviews of a lot of IP's.
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
These are exceptional circumtances, which need dealing with on an exceptional basis. Can I suggest that you get her to contact an insolvency practitioner to see what options there are for her. I am afraid that the daughter has to take some responsibility for this, and there are various options which are better discussed on a direct basis with this lady
