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I have been reading the posts on here for sometime but have never really seen any post that gives guideance on the equity in a home.
If a person is a home owner and has equity greater than the amount that will be available through the monthly dividend payments and the addition that would be available from either a Mortgage increase in year 4 (upto max 85% and not exceeding 50% of the Dividend amount being paid monthly)or an extra 12 months ( ie a 72 month IVA and not 60 month)would an IVA still be acceptable and be accepted. Obviously a person could still attempt a remortgage but I would suspect that once things had got to an IVA position there credit rating would not allow this.
I suppose the question would also be would the creditors not simply push for a sale to recoup a greater return or is this one of the benefits of an IVA wherein the debtor can protect the family home.

Hi there and welcome to the forum

The equity in your property has to be disclosed to creditors as does your disposable income. Depending upon the level of your creditors, and if you have equity equal to or more than the debts, it is unlikely that an IVA is a suitble solution for you.

If, however, you had a smaller amount of equity - creditors will expect you to maintain contributions from your disposable income until the final year, where your property will be revalued and you will be asked to explore raising additional money based upon a maximum lend of 85% loan to value. If this provides a repayment in full to your creditors, this will be a great result for all concerned.

Oh - I think I now understand.

So in the position where the equity is less than that owed to creditors the IVA process proceeds in the same manner as would if no equity existed, until Year 4. In year 4 if there was equity then a person would be expected to have the property valued and make best effort to secure further borrowing upto a max 856% of the property value only then qualified by the fact that payments should then not then exceed 50% of the payment that had been made for the 4 year period that had passed.

And also a deminimis level of £5,000 below which no money is required to be raised.

Thanks ...so many questions still...just really need to know that I will not lose my family home...and that gives me the indication that I would be okay, even if I need to pay out more in year 4/5/6...Thanks

As long as you continue with the mortgage payments and any other loans secured on the property, you are unlikely to lose your house.

If you have not taken any advice from an IP yet about whether an IVA is right for you then I recommend that you visit www.iva.com for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to and the best way forward for your circumstances.

I am afraid that no-one can completely discount the loss of a family home due to debt problems - for instance if your IVA were to fail and creditors were to require your IP to petition for your bankrutpcy (albeit this is unlikely) then this could result in your property being affected.

Sorry Melanie, hadn't thought of that.

Melanie/Almostthere - when ascertaining what has to be released to pay into an IVA in month 54 or month 66 (if a 6 year IVA) the debtor is allowed to keep 15% of the property value.

There after the debtor has to pay in whatever sum equates to the value (less the 15%) less any current mortgage.

So the re-mortgage cannot exceed (prior to the credit crunch) 85% LTV but today around 60% to 70% is what lenders will offer and any re-mortgage monthly payment cannot exceed 50% of what was or is being paid into the IVA.

I hope that clarifies the position for you all.

Is your post directed at me David?

In part yes as LTV and a debtors 15% "keep" of the property appears confusing in your response.