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Posted: Tue Jan 19, 2016 1:37 am
by Dandm25
Hi
I'm in a iva and its in year 3.
I want to sell my house or move house and pay the iva off in full.
I have £100 k equity.
My iva company said I would need to pay £29 k to clear it yet I only had 32 k debt.
I've paid 18 k of payments so how is this possible.
Please help as I'm not sure what to do at the moment.
Regards
Dan
Oxford
Posted: Tue Jan 19, 2016 7:08 am
by watzki
To pay off an iva in full you also have fees and statutory intrest to pay on top of your original debt.Also your iva stays on your credit file for six years
Posted: Tue Jan 19, 2016 8:52 am
by kallis3
Hi and welcome,
You will also have a restriction on your property so that you cannot sell it without notifying your IP.
Posted: Tue Jan 19, 2016 9:02 am
by Michael Peoples
You could consider offering a full and final settlement to creditors and then sell the house once the IVA has completed. You could borrow the funds from a third party or even take a secured loan but it should save you money. Alternatively you could ask your IP to call a meeting whereby creditors get paid in full without statutory interest from the house sale as otherwise you could just let the IVA run.
Posted: Tue Jan 19, 2016 9:35 am
by Lisa Thomas
Hi Dan if you can afford to clear your IVA debts then you have to pay 8% statutory interest p/a plus all of the costs.
By my calculations this is roughly £52k. They have got £47k and I presume this is because interest will be on a lower figure if dividends have been paid during your IVA.
The only way around this is to either:
1) put forward a variation to sell the property and pay a lump sum into the arrangement from the equity (based on the contributions left including an extension) and maybe a little bit more to make it attractive
b) keep the house until your IVA is finished.
If your IVA runs its course you will probably find that a year extension is required in lieu of the equity but that's cheaper than having to pay all the equity in!