Auction Process in IVA

[SKM]

Hi

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?

[Foggy]

Congratulations on the impending arrival.

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.