Hello, I'm new to the forum and would appreciate your help/advice. My wife and I have a joint iva with 3 years completed. We want to move home but our realistic selling price won't allow us to pay all of a second charge on our home. Will the shortfall of the second charge be brought into our iva?
Hi Melanie
We intend to move to rented accommodation in another town (work is forcing the move). I have spoken to the charge holder and explained to them if we dont move then our only option is bankruptcy. They have then said they would consider a settlement offer. We have no issue paying over whatever is left after the sale but is that showing preference?
The shortfall to the secured creditor is included in your IVA, so you would not be in a position to negotiate a separate offer for them. I do think that you need to get this issue resolved, before you find a buyer for your property to avoid being disappointed. I have often seen a secured lender block a sale, for very uncommercial reasons.
