Selling a house whilst in an IVA

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claire273
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by claire273 » Wed Jun 20, 2018 10:37 am
I am currently in an IVA and selling my house can you please tell me how much I have to pay back, will it be what I owe on the IVA or the original debt?
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Foggy
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by Foggy » Wed Jun 20, 2018 10:48 am
claire273 wrote:
I am currently in an IVA and selling my house can you please tell me how much I have to pay back, will it be what I owe on the IVA or the original debt?


You will have to pay whatever amount takes you up to covering the full original debt, plus fees and possible statutory interest. Alternatively you could, rather than just sell now, offer to sell to provide a full and final offer based on the number of payments remaining. If this offer is rejected, as far as they are aware, the house will not be sold and they will have to wait for their money.
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Lisa Thomas
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by Lisa Thomas » Wed Jun 20, 2018 11:34 am
Have you taken advice before making this decision as most debtors enter into an IVA to keep their property and stay on the housing ladder?

If you sell it without a variation approved by creditors then you will have to pay over all of your share of equity unless and until the total debts, costs and usually statutory interest is paid in full.

Only then will you receive anything back, if there is a surplus.

I suggest you carefully consider proposing a variation on the basis of paying an amount equal to the remaining future contributions (if applicable) from the sale proceeds. Only then sell the property.
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claire273
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by claire273 » Wed Jun 20, 2018 1:54 pm
Lisa Thomas wrote:
Have you taken advice before making this decision as most debtors enter into an IVA to keep their property and stay on the housing ladder?

If you sell it without a variation approved by creditors then you will have to pay over all of your share of equity unless and until the total debts, costs and usually statutory interest is paid in full.

Only then will you receive anything back, if there is a surplus.


I suggest you carefully consider proposing a variation on the basis of paying an amount equal to the remaining future contributions (if applicable) from the sale proceeds. Only then sell the property.


Thanks for the reply unfortunately due to unforeseen circumstances my marriage has ended and I have to sell my property
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Lisa Thomas
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by Lisa Thomas » Wed Jun 20, 2018 3:59 pm
I would still recommend you get the variation in place first.

How much are your contributions?
How long do you have left in your IVA?
How much debt did you have originally?
How much is your estimated share of net equity?
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Foggy
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by Foggy » Wed Jun 20, 2018 4:21 pm
Don't let on at the need to sell ..... you are willing to sell only if creditors accept the offer. :wink:
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