Entering IVA soon, what will be the implications on my property?

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by michael914 » Thu May 11, 2017 12:03 pm
I'm entering into an IVA soon but don't know the implications in regard to my property at the end of the IVA, I might not have a property then as my wife might ask me to sign over the house but if that's not the case will the IVA company ask me to remortgage at the end of my term to pay back what I haven't paid to creditors? I'm new to this.
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by Foggy » Thu May 11, 2017 12:16 pm
I would suggest you have a long chat with your chsen provider about this -- as it has to be understood before you commit.

Different firms do treat properties differently ( within the regulatory framework). Some will use the pre 2014 Protocol, which requires you to attempt to remortgage or add 12 payments onto the term uif this proves impossible (which is currently usually the case -- but things might change). Some will use a post 2014 Protocol, which adds in the option of a secured loan to release equity. One, I know of, uses R3 terms, which are broadly similar to the pre 2014 Protocol in this respect. In all of these they relate to YOUR SHARE of equity, which has to be over £5k to trigger the equity clauses.

You will not be able to sign over the house as your share of equity is pledged until that matter has been addressed (usuaklky at month 54) and there will be a restriction placed on the title deeds. Again, this aspect should be explored at the start -- sometimes, if the circumstances are pressing enough, creditors will agree to exclude property on the proviso that you extend the term of the IVA ( usually by the 12 months) to compensate.
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Michael Peoples
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by Michael Peoples » Thu May 11, 2017 1:02 pm
If you are in the middle of divorce proceedings this property will need to be addressed. Your wife should obtain independent legal advice and your IP should explain all the implications to you. If this has not been done and you are nearly ready to go for a meeting of creditors you should think again and perhaps get a new IP.
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Lisa Thomas
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by Lisa Thomas » Fri May 12, 2017 8:24 am
1. Your Nominee should have explained this to you in detail.

2. Have a look here:


3. Once in the IVA you won't be able to transfer the property...
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