www.iva.co.uk

is your house at risk of being taken away if you sign up to an iva as a home owner with out standing morgage and not much equity

I don't really know about this, our situation is difficult as we have no equity, a 120% mortgage and a secured loan on the house so are having to try and sell it, thats if the loan company will "lift" the second charge and enable us to sell! Otherwise, we'll have to let it get repossessed, (I hate typing that, I just cannot believe we are in this nightmare)!!!!

Hopefully if we can sell, we can put the shortfall of debts into the IVA pot? Its mindboggling, every day seems to bring a new problem

one of the advantages of an iva is that you are able to keep your house ( it gets protected in the iva ) where as in bankruptcy the OR would list it as one of your assets to be sold, in an iva you maybe asked to release any equity available in year 4 of the iva, you say you have very little so may not be a clause in yours, you will be asked to get an upto date valuation don't worry an estate agents one will do (this doesn't cost) to see what the house is worth.
hope this helps keep posting and let us know how you get on
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

Hello

In an IVA you can attempt to exclude your property, commonly by offering extra monthly payments in lieu of any equity. However many creditors do not agree to this and will try to modify your proposal by asking for a re-mortgage in the 4th year of the IVA, this means the property is included and is therefore at risk. You should seek your own independent advice though so you can get an answer which suits your individual circumstances.

Hope this helps

AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

Hi Accuma folks

Is this based on just 'windfall' equity increase since the start of the IVA, or simply any/all available equity up to a certain %age ?

Just wondering. . .


'5 years sticking my head into the Lion's mouth of debt !'

I,m afraid its as much as you can raise in the final year of your IVA and its a bit of a grey area.If property continues to rise then it could be a large chunk[maximum it could be would be your total debt plus IP fees and possibly interest less payments made.
There are changes coming[hopefully] that will agree the equity release before you start the IVA.
Any remortgage and release of funds will be determined by your ability to actually remortgage and if you are unable to because of costs etc then you can possibly extend your IVA term by a year to compensate for the non equity release.
You must make sure that your IP fully explains the equity release clause and that you fully understand it.
regards