Is it right that IVA can take 85% of house sale profit, if sold during IVA?

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lynne892
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by lynne892 » Thu Feb 22, 2018 4:34 am
I am selling my house and have an IVA debt amounts to 38k. Is it right that they can take out of profits 85% of profit, which in my case would amount to 106k to settle IVA. Why wouldn't they just take required amount to settle n full?
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luluj
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by luluj » Thu Feb 22, 2018 7:00 am
You rill only pay back the original debt plus IP fees plus statutory interest.
Anything more from the sale of the house will be yours.

I presume your IP has given permission for the sale of the house during your IVA ?
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Foggy
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by Foggy » Thu Feb 22, 2018 7:39 am
They usually hold the 85% and deduct whatever amount is due to cover the fees as Luluj has described. The balance will be returned to you.
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Lisa Thomas
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by Lisa Thomas » Thu Feb 22, 2018 9:52 am
Is there a special reason you have decided to sell the house and pay all the equity over instead of offering a variation first and only paying over an amount equal to the remaining contributions?

This is going to cost you a lot more doing it this way so I wouldn't recommend it.

These quick video I made might help explain things a little.

https://youtu.be/PHfc85n39U4

https://youtu.be/h4dozq9aGak
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Shaun Vickery
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by Shaun Vickery » Thu Feb 22, 2018 10:14 am
It may be that you can negotiate a full and final settlement prior to selling the property and conditional upon it or alternatively raise funds short-term against the house in order to do so. The latter would then leave you free to sell at your leisure.
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