I am in my final year of my IVA and have been asked to reakise the equity in my home to satisfy the outstanding debt.I cannot afford a remortgage so have decided to sell my home.Is it true that I only have to pay 75% of the equity to my creditors?
Does this mean I am able to keep the remaining 25%? I agreed to 100p in the £ at the beginning.Also I am considering using a quick sale company who will only pay 85% of te value.
Please advise as I am going grey"ier" by the day.
My house has lost equity and is valued less than it was 5 years ago.
I have paid Â£12000 already and still owe Â£46,000.
I have read some where that the max the creditors can ask for is 75% of the equity.I obvously have to start again with renting so would need the 25% , if allowed, to do this.
This will not pay the outstanding debt.
This will require a variation and permission from creditors. Speak to your IP and explain what you will need to keep after the sale. For example if your credit file is impaired you could need up to six months of a bond should you rent and there will also be removal expenses. It does not really go down to percentages but creditors will normally allow reasonable expenses from a sale.
Depending on the level of equity have you considered a sixth year extension and try and keep the property?
Thank you for your response. I am set on selling as I have had 5 years of the IVA and really just want to start again.Paying the monthly agreement(12,000) has nt reduced my debt at all - has all gone on admin fees etc so really dont want to continue lining the pocket of my IP.
I have been considering using one of the quick buy services but they will only pay 85% of the house value.
Is 75% of the equity a reasonable offer ? Or will I need to detail all te expenses incurred with the house sale like 6 months bond etc,
I understand that the open market would achieve a higher price but it also means that I have to pay solictors fees , estate agent fees,HIP and I just do not have the spare income needed to pay these.
If I entered into a sixth year, I would still need to sell to pay off the outstanding IVA after the year as well as a further Â£2400(Â£200pm) to my IP wouldnt I ?
Do be careful about selling your property in the manner you suggest. I undertand that you want the IVA done and dusted, but do think about the future as well.
A good IP would put forward a variation for you probably enabling you a realistic time to sell, and potentially allow you to retain some money for relocation costs. And a lot of IVA proposals provide for the additional year's contributions to be in lieu of equity release - so you might find that if you pay the additional sums you will not have to raise equity at all.
Get some advice from your IP, who ought to be helping you with this matter.
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