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Posted: Wed Jan 07, 2009 10:55 am
by andyb98
I have negative equity and also a reduced income which means I can no longer meet my monthly bills (including mortgage repayments).
Are my monthly mortgage payments included in an IVA? And if the mortgage payments are included in the IVA what happens when the IVA ends? Thank you
Posted: Wed Jan 07, 2009 11:28 am
by MelanieGiles
Hi andy and welcome to the forum
Are you actually in an IVA at the moment, or just considering whether one would be a suitable way to deal with your debts?
You must prioritise your mortgage payments, over other payments to creditors as your home is at risk. Secured creditors are only included in IVAs to the extent of any unsecured liability, which you suggest from your comment about negative equity. How much do you feel the negative equity actually is?
Posted: Wed Jan 07, 2009 11:29 am
by kallis3
Hi Andy and welcome.
Your mortgage is only included in an IVA to work out your disposable income. The payment itself has to be funded seperately.
Only unsecured debts are bound by an IVA.
Posted: Wed Jan 07, 2009 11:42 am
by MelanieGiles
But this would include the negative equity sum Jan!
Posted: Wed Jan 07, 2009 11:46 am
by kallis3
Sorry Melanie - I keep forgetting that!