Hi tso
If the property is owned, with a mortgage, then it is only the equity element which is taken into account during personal insolvencies. If the property is jointly owned - ie between husband and wife, the equity element is usually shared equally.
Under current IVA creditor requirements, it is usual for a modification to be proposed requiring the property to be valued during the final year of the IVA and the equity sum to be calculated. Creditors like to see between 75% and 100% of the equity raised, by way of a third party contribution, remortgage or sale.
During the IVA, you are required to continue to pay the mortgage payments as the lender retains security over your property.
If you were to be made bankrupt, your interest in the property would vest in a Trustee who is appointed to realise your assets and distribute the proceeds to your creditors. You are generally allowed one year to deal with this, following which the Trustee can apply for a possession order.
More specific information regarding your query would be helpful, in order to address the points concerning you.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
