Selling house whilst in IVA

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berni
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by berni » Thu Jan 18, 2018 4:14 am
hi im loooking at going into my iva, i own my house with a mortgage if i sell my house whilst in the iva will i have to pay of all my debts
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luluj
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by luluj » Thu Jan 18, 2018 5:14 am
Whilst in an iva there will be a restriction placed on the sale of your house to ensure equity raised is paid back to your creditors up to 85% value (I think thst is the right figure) of your property, leaving you enough probably to pay a deposit for rental accomodation.

You have to get the permission of your IP to sell your property whilst in an iva.

If you are yet to enter your iva then it might be more sensible to sell up now, pay your debts which may well then mean you don't need an iva and thus not impacting on your credit rating for 6 years.
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Foggy
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by Foggy » Thu Jan 18, 2018 7:49 am
Depending on the figures you might be able to raise a secured loan with which to make an offer to creditors for a lump sum payment. You would need to discuss this possibility with prospective IPs as part of the initial fact finding exercise.
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Lisa Thomas
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by Lisa Thomas » Thu Jan 18, 2018 9:46 am
Might be best to sell house first and use proceeds to do a deal with creditors. You might not need an IVA.

However if you want to keep your property and stay on the property ladder you may want to chat to an IP about the possibility of a contributions based IVA.
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