www.iva.co.uk

I currently have £22000 equity in my house where live with my partner and child If i applied for IVA would the creditors take the equity out of my house? and also how would they do it? and where would my partner stand?

Also, what are the percentages of your IVA not being accepted by the creditors?

Hi scott and welcome to the forum

If you were to enter into an IVA, you would be required to agree to having your property revalued during the final year and then raising equity based upon new lending of 85% loan to value.

So if your house was to be worth £100k at that time, you would be required to borrow £85k and use the money firstly to repay your existing mortgage with the surplus funds then being paid into the IVA at which time your IVA contributions could stop.

There is a £5k deminimum limit on this and also your new mortgage payments must not exceed 50% of your current IVA payments. If your partner is a joint owner he/she would have to agree to this and then you would only need to raise your share of the quity.

Between 80% and 90% of IVA's generally are accepted, but some IPs have a record just short of 100%/

Hi
You will be required to remortage your property and release the equity that is equivelent to the difference between your current mortage[as it stands in the final year]and 85% value of your house.You will then have to pay into your IVA your share of this equity[normally 50% if house is jointly owned]This extra mortgage must cost you no more than 50% of your IVA payment,finally the amount that is due,if under 5k,will not be asked for.
Your partners income will be assessed for your IVA so that the IP can make sure that you each pay a fair share towards bills as a proportion of your income.
Some IPs have an acceptance rate in the high 90% and others 70%
Pays you to take your time and reseach for a good,successful IP
regards

Hi Mel
Wish I could type faster
Regards