Selling house to pay off iva?

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kallis3
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by kallis3 » Tue May 02, 2017 2:46 pm
If it was accepted you would have to wait for your completion letter unless you could get them to remove it sooner.
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Shaun Vickery
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by Shaun Vickery » Tue May 02, 2017 3:35 pm
Unfortunately it's impossible for any of us here (or even your IVA firm) to say for sure whether they would accept the £7,500. The reason for this is that it would have to be put to your creditors who would vote on it. Therefore the decision rests with them but it doesn't seem to be entirely out of the question, particularly given your circumstances.

Alternatively it may be possible to agree to make a full and final settlement of the £10,000 you suggest out of the sale proceeds of the house as long as, for your protection, you obtain the relevant assurances that on the sale it will be limited to this. From your creditors point of view I suppose you do have to appreciate that, as it stands, they are entitled to be repaid what you owe them if you sell the house and 'realise' the equity. Once a full and final offer is accepted and the money is paid over then (again as long as you have the appropriate undertakings from them) then they should have no further interest in the house. This can sometimes take a few weeks to be formalised through the official land registry records but this can all be managed by a solicitor dealing with the sale.
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Laura Harrop
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by Laura Harrop » Wed May 03, 2017 11:32 am
Hi Krif

If you could email me at customersupport@debtfreedirect.co.uk with your full name and address, I will happily look into this for you.

Kind regards
DFD
Krif
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by Krif » Wed May 03, 2017 11:58 am
Laura, to be honest dfd haven't been any help at all and feel we have been mislead. When taking this out we was told they would support & do everything so we would pay back as little as possible. Was told don't worry about equity that there wouldn't be any available when clearly we would have some. Not told how they actually work this out, know they leave us 15% but what about fees etc.
Now dfd just seem to want more and more off us for doing no work. We email no response, call on hold ages then nothing done to support us. They even take our disability eliment of tax credits.

I don't see what you can do differently to help us as we are mislead when we call and not told all our options.
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kallis3
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by kallis3 » Wed May 03, 2017 2:04 pm
Please speak to Laura and see if she can help you. Nobody knows when they start if there will be equity.or not.

My husband has all of his disability benefits taken into account for his income.
Krif
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by Krif » Wed May 03, 2017 2:19 pm
Did they then put your husbands disability benefits down as an outcome as the money if for his disability?
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kallis3
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by kallis3 » Wed May 03, 2017 2:32 pm
Yes they did as it was part of his income.
Krif
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by Krif » Wed May 03, 2017 3:32 pm
With my dla they put it as an income but then put the same amount as an outcome.
With my tax credits they put it as an income but they then don't put the disability eliment of tax credits as an outcome.
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Laura Harrop
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by Laura Harrop » Wed May 03, 2017 3:56 pm
I understand your frustrations, however if you will allow me to look into this further for you, I am sure that I can provide clear information with regards to your situation.

Kind regards
DFD
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Shaun Vickery
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by Shaun Vickery » Wed May 03, 2017 4:04 pm
I would encourage you to give Laura the opportunity to help if she can
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kallis3
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by kallis3 » Wed May 03, 2017 4:57 pm
Agree with Shaun - please speak to Laura - she is trying to help you.
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Foggy
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by Foggy » Thu May 04, 2017 6:57 pm
I can only echo ... please speak to Laura. She has helped many DFD customers sort out queries before. Even if the outcome is not one you want, at least you will get an explanation.
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luluj
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by luluj » Fri May 05, 2017 3:49 am
Sound advice from our forum experts. £7500 is a good offer based on the circumstances you explain - make sure any offer of a third party is only made on the basis of the iva coming to an end and if not approved that money would not be available to you.

I presume you have claimed for the relevant benefitsto support both your husband and your ill health ? If not I would approach your local office to claim ESA/UC/ PIP etc.
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by Krif » Sat May 06, 2017 4:47 pm
We now have an offer from a 3rd party to make a full & final offer.

What do we need to do now. We are sure we have equity in the house. Would they exspect and higher offer if there is more equity in the house or will a reduction on the 12 months left then am extra 12 months because of equity?

What paperwork will we need to send to make an offer? Would an online valuation be acceptable or would in need to be in person.

One of our creditors didn't respond when the iva was set up so they are not getting any payments. Will this debt be written off if the iva is completed even though they had no money?
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Foggy
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by Foggy » Sat May 06, 2017 5:04 pm
Krif wrote:
We now have an offer from a 3rd party to make a full & final offer.

What do we need to do now. We are sure we have equity in the house. Would they exspect and higher offer if there is more equity in the house or will a reduction on the 12 months left then am extra 12 months because of equity?

What paperwork will we need to send to make an offer? Would an online valuation be acceptable or would in need to be in person.

One of our creditors didn't respond when the iva was set up so they are not getting any payments. Will this debt be written off if the iva is completed even though they had no money?



Usually, if you are a home owner and cannot prove that there is no equity (or less than £5k) the creditors will expect you to factoe in an extra 12 payments in lieu into your offer. If you are admitting equity, rather than trying to disprove it, I would think an online valuation would suffice.
Yopu will also need a letter from the third party stating that the funds are available and that they are for the purposes of a Full and Final offer only. Some IP's might also require a bank statement showing the funds in an account ( other than yours).
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