www.iva.co.uk

Equality Vs Debt - Hi, I have a property that's valued at £340,000, outstanding mortgage £202,000. ( £138K equity). My debts are currently £90K. Would this qualify for an IVA? I'm thinking if a bankruptcy with all changes and the sell price at an auction plus all fees has to add up to a fair bit. What's the chances of being accepted for a IVA?

Even with that sort of equity an IVA is often better for the creditors than BR, depending, of course, on the bottom line figures and the full set of circumstances.

You will be obliged to attempt to release some of the equity towards the end of the agreed term, If unable to do so the IVA will be extended. Ask any prospective IP for a written example of the calculations they will use, before signing up to the IVA, to avoid any nasty surprises down the line.

It would appear, Dan, that you have been in an IVA before with £100k equity --- it worked then, no reason why it shouldn't now, apart from getting creditors to swallow a second bitter pill (which happens) .

What are your proposals to creditors - are you wanting to keep the property?

Have you looked at what you can afford to pay into an IVA in lieu of any equity or sale of the property?

Can your interest be sold to a third party such as a spouse or family member?