will my house be at risk if I do an IVA ?

[adrian.e]

Hi,
Can you please let me know whether my house will be at risk if i do an IVA?
I owe around 15,000 of unsecured debt on a loan and credit cards.
how much do i pay you to sort my mess out?
Many thanks

[carlmcmullen]

Hi Adrian,

We would need to know a little more about circumstances.

How much is your proprty worth and what is outstanding on the mortgage. An IVA is intended to protect your property but should there be a substantial amount of equity then an IVA may not be the best way to deal with your debts.

Also with £15,000 debt again it may be that a debt managment plan is more appropiate for you.

With regards to how much is going to cost you, the company you choose to go with will make a assessment of your income and expenditure and what is left over is what you will pay.

No two cases are the same it is based on your own circumstances, so the payment will need be assessed.

Have you approached an IP yet ?

[MelanieGiles]

The only risk to your property if you enter into an IVA is if you default on the payments you could end up being made bankrupt. This would only be of issue if you had equity in the property which would automatically vest in a Trustee who would be tasked with realising his/her interest and that could result in your property having to be sold.

Under current IVA protocol you will be required to have your property revalued during the final year of the IVA - usually the fifth year - and then remortgage to a maximum 85% loan to value, using any funds raised to firstly pay off your existing mortgage and then introducing any residual balance to the IVA for the further benefit of your creditors.

The best thing to do would be to have a chat with an insolvency practitioner who can advise you about all options available to you and especially how they may affect your property.