Equity Vs Debt

Get expert opinion. This is the place for new questions to be posted.
4 posts Page 1 of 1

Dan.m

User avatar
Posts: 8
Joined: Thu Mar 12, 2015 7:09 pm

Post by Dan.m » Fri Mar 13, 2020 7:22 am
Equality Vs Debt - Hi, I have a property that's valued at £340,000, outstanding mortgage £202,000. ( £138K equity). My debts are currently £90K. Would this qualify for an IVA? I'm thinking if a bankruptcy with all changes and the sell price at an auction plus all fees has to add up to a fair bit. What's the chances of being accepted for a IVA?

Foggy

User avatar
Forum Expert
Posts: 31255
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Fri Mar 13, 2020 7:51 am
Even with that sort of equity an IVA is often better for the creditors than BR, depending, of course, on the bottom line figures and the full set of circumstances.

You will be obliged to attempt to release some of the equity towards the end of the agreed term, If unable to do so the IVA will be extended. Ask any prospective IP for a written example of the calculations they will use, before signing up to the IVA, to avoid any nasty surprises down the line.
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

Foggy

User avatar
Forum Expert
Posts: 31255
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Fri Mar 13, 2020 7:57 am
It would appear, Dan, that you have been in an IVA before with £100k equity --- it worked then, no reason why it shouldn't now, apart from getting creditors to swallow a second bitter pill (which happens) .
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

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Fri Mar 13, 2020 10:14 am
What are your proposals to creditors - are you wanting to keep the property?

Have you looked at what you can afford to pay into an IVA in lieu of any equity or sale of the property?

Can your interest be sold to a third party such as a spouse or family member?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
4 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”