I'm about to sell my house although I currently have an IVA. I waited a very long time but finally received a redemption figure to clear the IVA. so was expecting that figure to be minused off whatever is left after the sale of the house. However there now appears to be some confusion and they are asking for ALL funds from the sale minus the costs to be held in a trust, with no guarantee I'll get anything back. At no point was this confirmed by the IVA company or put forward by my conveyancer. I've already moved out of my home and I don't have much money to live on (I really wanted to settle all my debts and have a fresh start). I'm getting a little desperate. Can anyone offer any advice?
It is common practice for funds to be held, not in a trust as such, but to the IP's order. That said, it is also no big problem for the IP to provide the settlement figure, calculated up to the day of completion and for the converyancer to undertake to redeem this amount to the IP (in the same way as they do for mortgage lenders), letting you have the balance.
It is a pity that the transaction has got so far as there could have been better ways to deal with it from the start.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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