wayne452 wrote:I have an IVA application in progress. I understand I am not allowed to obtain credit if this is approved. My question is this: I am led to believe my house is protected under an IVA. I have a flexible Mortgage which allows me to take payment holidays. If I take a payment holiday when the IVA is in progress, is that classed as obtaining credit and as such need declaring to my practitioner?
It would not be classed as obtaining credit, but, unless agreed in advance with your IP, on the months that you take as a holiday period your expenses will drop by the mortgage payment and your disposable income will increase. There are other possible ramifications in that, over the term of the IVA, by commuting these payments, you would be reducing the equity in the property and, potentially, depriving creditors of the proceeds when you sell or if the equity release clause kicks in.
Who is onlineUsers browsing this forum: No registered users and 15 guests
Ask the IVA Experts a QuestionSimply complete form and you will get an answer from our IVA Experts (multiple replies within an hour *)
* Any use of this forum is conditional on you having read and agreed to our terms and conditions.
* If you enter your phone number, Vincent Bond and Co Ltd will give you a courtesy call to ensure that your question has been answered.
* The question will be posted on our forum, we will email you the location