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

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


User avatar
Posts: 1
Joined: Thu Feb 22, 2018 4:34 am

Post 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?


User avatar
Forum Expert
Posts: 10393
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post 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 ?
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"


User avatar
Forum Expert
Posts: 28119
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here :

Lisa Thomas

User avatar
Industry Expert
Posts: 7261
Joined: Wed Dec 03, 2014 10:26 am

Post 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.
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: ... Z5k9ZcC2MA 01752 786800

Shaun Vickery

User avatar
Industry Expert
Posts: 754
Joined: Tue Feb 12, 2013 8:32 am
Location: United Kingdom

Post 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.
Highly Commended at the British Mortgage Awards. For individual mortgage advice go to
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”