Sell off house to pay off IVA

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jonathan189
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by jonathan189 » Tue Apr 17, 2018 7:07 pm
Hi I am wanting to sell my house which i have 50k equity in it to pay my iva off is this possible
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Foggy
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by Foggy » Tue Apr 17, 2018 7:19 pm
It is possible, but not always the best solution. Getting back on the property ladder could be difficult (even without an IVA in your past) as can renting, going forward.

If you do decide it has to be handled carefully ....if you just sell up the IVA will take all of your equity up to the amount of your origina debt, plus fees and possible statutory interest. If the equity doesn't over that amount the IVA paymebts will continue as before. The way around this is to make a full and final offer ... you make this in the terms that you are willing to sell the house in order to fund the offer, and, if the offer is refused, the sale will not take place. The amount involved here will be based on the number of payments remaining, plus 12 (for equity release), nultiplied by the current monthly amount.
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Lisa Thomas
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by Lisa Thomas » Wed Apr 18, 2018 8:08 am
You could propose a variation to sell the house and pay creditors the same amount they would have received in contributions had the IVA continued in the normal way, from the equity.

But get this variation agreed FIRST otherwise all of the equity will have to be paid into the IVA unless and until the total debt plus interest plus costs have been paid in full.

Remember this will lose you your property and you will be at the bottom again as Foggy points out.

Is this what you want? Most people enter an IVA to keep their property.
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Shaun Vickery
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by Shaun Vickery » Wed Apr 18, 2018 4:24 pm
Alternatively you could raise funds against the house in order to make a full and final offer, then you will be free to sell the house at your leisure because your creditors' interest will be removed.
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