Land registry removal when terminating IVA?

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benjiv50
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by benjiv50 » Wed Oct 18, 2017 3:12 pm
Hi guys, does terminating an IVA break a land registry restriction?

We are selling our house, I'am in an IVA, there's a restriction on the registry advising before sale written consent must be provided by IP. Our situation means out of any monies left over from the sale, I will not be able to pay my IVA off therefore to stop any issues with the sale going through I want to find out, if I terminate my IVA, will the land registry restriction automatically be removed?
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Michael Peoples
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by Michael Peoples » Wed Oct 18, 2017 3:45 pm
Terminating the IVA may not sever the 'trust' which would mean the asset is captured by the IVA after the IVA has been terminated. It may be better to use some funds as a full and final settlement of the IVA and retain sufficient for your immediate needs. You usually retain 15% of the equity from any sale and the rest goes to creditors so it may be better to do this properly. Seek independent legal advice or speak with your IP.
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Foggy
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by Foggy » Wed Oct 18, 2017 4:04 pm
The house is an asset of the IVA and, much like PPI, can get caught by the trust created by an IVA, which is not always severed when an IVA is terminated. In BR or in a normally concluded IVA the prperty is dealt with, one way or another, within the terms of the arrangement, but is left "in limbo" in a terminated arrangement. I would be inclined to tread with caution. Get any assurances that might come from your IP in writing.
benjiv50
Posts: 10
by benjiv50 » Wed Oct 18, 2017 4:13 pm
Thanks for your replies very helpful!
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