www.iva.co.uk

Hi,

I am very concerned that I will be forced to sell our house to pay for IVA after 5 years of starting.
Is there any way I could avoid that for certain?
I have outlined some figures below for guidance. Your view is most appreciated.

Total Creditors £37kOwn a house- Joint Mortgage Outstanding £167k Valued at £267k
Alex Income from Self Employment £611pm 
Alex Other Earnings  (50% off £813pm).  £406.50pm
Universal CreditChild Benefit (50% Off £91). £45.50pm 
Total Expenditure £1515pm 

Are you in an IVA or just looking for one?

You are not usually required to sell your house but, after five years, if you have sufficient equity you will be either required to try and release equity via remortgage or secured loan, or continue on for a further 12 months.

I have removed your surname in case you can be identified.

Hi

Thank you for your prompt reply.
Is it up to me to choose to sell and repair or remortgage or pay further 12-months or they will dictate the terms?
I rather pay further 12 months store rather than paying the balance.

Regards

Timing might be key here....... Under the usual terms you have to seek to remortgage and present proof of being unable to do so ... then the 12 month extension will kick in. Some IPs will seek a remortgage for you. If you can remortgage, you are obliged to do so, as long as it is within the agreed terms.

Now ... if you have a Protocol IVA ( it should say so on the front) there are temporary amendments due to Covid ... valid until the end of April 2021, so far. Have a look here: https://www.gov.uk/government/publicati ... a-protocol . Look at section 3 paragraph 1.12 , where they say that, unless you want to, you should not have to attempt to release equity, but jump to the extension instead.

You will not have to sell.