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Posted: Wed Mar 11, 2015 3:41 pm
by Nicki P
Hi, should my IVA fail before it's term what will happen to the restrictions placed on my house deeds? Will it be taken off by my practitioner?
Thanks
Nicki
Posted: Wed Mar 11, 2015 4:00 pm
by lifenoteasy
Unlikely - you would still owe money so your creditors would still want the restrictions.
Posted: Wed Mar 11, 2015 4:50 pm
by Dave Bowman
I take it you mean the restriction place by your IP by way of the RX1 form you would have signed at the start of your IVA?
If so and your IP is no longer acting for you, they will remove it for you (you may need to give them a gentle nudge) as they no longer need the restriction
Posted: Wed Mar 11, 2015 4:59 pm
by Foggy
The RX1 restriction is merely to alert your IP should you decide to sell without his knowledge. It also serves to alert prospective purchasers that there is a potential problem.
Creditors do not rely on this and will seek to impose their own charges on the property if they wish.
Posted: Wed Mar 11, 2015 5:06 pm
by Nicki P
Thank you for your swift replies. I don't have the proposal in front of me at the moment but I seem to remember the restriction was to stop me selling my house whilst in the IVA.
There is no equity in the house and all of my debts were unsecured so had hoped the restriction would be removed if the IVA failed and I'd be back to square one.
Posted: Wed Mar 11, 2015 5:20 pm
by Foggy
The restriction should be removed if the IVA fails, but square one is not quite where you will be as creditors will lump back on the interest and possible charges they have been unable to add whilst your are protected by the arrangement, so your debt could be higher than when you started.