www.iva.co.uk

we are not sure were we stand if we go for an iva. one company saying that they might make you get some of the equity out of your house at the end of the term of the iva ,others say they dont. can you clear this up for me

Hi and welcome.

Its quite normaal to be asked to release some of the home equity towards the end of the IVA.
Its pretty standard now.

How much do you owe and how much equity do you have?

If you are considering going for an IVA, can I suggest that you speak to an Insolvency Practitioner?

Visit www.iva.com or visit the expert link on the left hand side of the page here. All experts who post on here come highly recommended. They will explain all the options open to you and advise as to the best way forward.

They will also answer any questions you may have.

If the IP firm is using the IVA protocol, and personally I would not recommend one who was not, the property equity is a pre-requisite and you will not get an IVA accepted without this. Even with a non-protocol proposal creditors are most likely to modify it in in any case.

You will be required to raise additioanl borrowing up to 85% of the value of your property, and inject your share of any difference between that new sum and the mortgage which has been repaid - subject to affordability limits. IPs ought to firmly explain this to their clients at an early stage, as the family home is probably the most important consideration when it comes to considering the right debt solution.