My husband entered an IVA (from business debts that he put personal guarantees on!) that was due to end this year (2020), but due to Covid-19, it has been extended by a year, in that we have another year (until June 2020) to come up with the funds to settle the debts. He does not pay anything monthly.
We have a flat that has around £70k equally shared equity, once the flat sells, the IVA terms would be met as I have agreed half my equity to settle the debts, in hope we can start again. I am not associated with the IVA in any other way (and only associated with my husband's finances via marriage).
We have had 3 buyers, but all sales have fallen through, if we go to auction, which seems likely, I am under the impression there will be a reserve on it, which will be enough to cover the debts in the IVA terms. However, I am wondering, how long does this process take, will it be that it come to June and we am no longer responsible for the mortgage payments, I ask as I want to move to rented accommodation, which cost significantly more than my mortgage payments and I don't really want to have to pay both mortgage and rent. I am 4 months pregnant, baby is due May 2021 and IVA ends June, so hoping to move by April 2020 at the latest. If I am responsible for the mortgage payment when it goes to auction, then we will have limited funds. I am assuming, I will still have to pay the mortgage until the property is sold. It has been a bit of a blessing that I got to stay here another year and wasn't forced to move because my husband lost his job due to covid-19 and I would not have been able to afford rent alone. He is working now and we can afford it.
Also, what if it doesn't sell in the auction, then what?
The auction process is usually much faster than the traditional selling route, once you get an auction date for listing.
As you appear to have a totally non-standard IVA we cannot comment on what should or could happen as you are bound by whatever terms were agreed in the arrangement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk