we have had an iva for 5 months

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andytracey
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by andytracey » Sat Jan 23, 2010 5:25 pm
we have had an iva for 5 months now, although its hard we are managing ok. The thing is, we want to sell our house and buy smaller as our mortgage is so high we cant buy extras like clothes. Whilst being in an iva, is it possible to sell your house and then rent. This would lower our outgoings so much.

 

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kallis3
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by kallis3 » Sat Jan 23, 2010 5:53 pm
Hi andytracey.

Glad your IVA is going ok.

You can sell your house and rent, but any equity in it would have to be paid across to your IVA although I believe you can retain some to help with a rental deposit.

If your rent is less, then you would have more disposable income and I imagine your payments would go up.

 

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The Major
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by The Major » Sat Jan 23, 2010 9:21 pm
Hi, Isnt keeping your home more important than the IVA, if you reduce your outgoing the IVA will then take up the slack in your extra revenue leaving you no better off.

 

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Adam Davies
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by Adam Davies » Sat Jan 23, 2010 9:53 pm
Hi
You may struggle to find another mortgage unless your existing lender re finances you. The major is right in that any decrease in expenditure will just increase your IVA payments unless you can agree with your IP to increase some expenditure allowances
Regards

 

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kallis3
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by kallis3 » Sat Jan 23, 2010 10:06 pm
My apologies - I misread the first bit, I thought they were talking about renting.

 

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Julie
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by Julie » Sun Jan 24, 2010 8:45 am
Hi andytracey,

Have your mortgage payments increased since your IVA approval? If so, let your IP know and see if adjustments can be made.

If the IVA was approved on the basis of your current re-payments, then it seems as if your allowances are not realistic if you are struggling already.

Either way you should discuss with your IP about making your allowances more realistic.

Good luck and keep us updated xx

 

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MelanieGiles
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by MelanieGiles » Sun Jan 24, 2010 1:01 pm
Unless there has been a change of circumstances, you should not be struggling so early into an IVA - and this does suggest that the figures were very wrong in the first place. Were you concerned about the level of payments, and did the IP use your figures or tell you that you could only have certain allowances?
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