Inheritance

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Rosiebear

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Post by Rosiebear » Fri Feb 21, 2020 6:37 pm
I am coming into an inheritance and will be settling my IVA early next month. I also want to buy my house through the right to buy, I will pay cash, how long after my IVA is settled does it stay on my credit file? I am in my 3rd year of paying it. I have been told I will have to wait until it goes off my credit report before I can purchase my house.

Foggy

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Post by Foggy » Fri Feb 21, 2020 7:25 pm
The IVA will remain on your credit report for 6 years from its start date.

I am not convinced that the IVA, once completed, will prevent you using the Right to Buy. The relevant rule says:

Circumstances in which the right to acquire cannot be exercised
121.—(1) The right to acquire cannot be exercised if the tenant is obliged to give up possession of the dwelling-house in pursuance of an order of the court or will be so obliged at a date specified in the order.
(2) The right to acquire cannot be exercised if the person, or one of the persons, to whom the right to acquire belongs—
(a)has a bankruptcy petition pending against him,
(c)is an undischarged bankrupt, or
(d)has made a composition or arrangement with his creditors the terms of which remain to be fulfilled.


121:2:d has the important wording ( I have highlighted in red italics ). Once the completion certificate has been issued the terms of the arrangement with creditors will have been fullfilled, therefore not a bar.
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

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Post by Foggy » Fri Feb 21, 2020 7:33 pm
Also -- be prepared for the IVA to take the balance of the full original debt, plus fees and possible statutory interest from the inheritance (not just the remaining IVA payments).
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

Rosiebear

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Joined: Fri Feb 21, 2020 5:46 pm

Post by Rosiebear » Fri Feb 21, 2020 7:57 pm
The settlement figure is for the full amount plus fees, less what I have paid already, do you think I should reapply once I have my completion certificate then?

Foggy

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Post by Foggy » Fri Feb 21, 2020 8:14 pm
Fri Feb 21, 2020 7:57 pmRosiebear wrote:
The settlement figure is for the full amount plus fees, less what I have paid already, do you think I should reapply once I have my completion certificate then?
For the RTB ?? Yes. After the completion certificate is issued you will have no outstanding debt, nor any unfulfilled commitment to creditors. According to The Housing (Right to Acquire) Regulations 1997, Schedule 2 Part V, 121.2.d you should qualify.
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

Rosiebear

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Joined: Fri Feb 21, 2020 5:46 pm

Post by Rosiebear » Fri Feb 21, 2020 8:16 pm
Great! Will reapply once I have the completion cert, thanks for the advice! :D

luluj

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Post by luluj » Sun Feb 23, 2020 7:17 pm
But remember the iva will continue to show on your credit report until the 6th anniversary. Hopefully one certificate issued RTB will be easier, but I am still hesitant and think you may have to wait until 6th anniversary- but hope I am proved wrong
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