Selling home to payoff IVA

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kevin961
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by kevin961 » Wed May 17, 2017 6:45 pm
Hi, I am in an iva, I have payed £18.000 of my £31.000 with 2 years to go, I am looking at selling my home, I want to pay the rest of my iva with an extra £40.000 on top, also pay a
loan of £12.000 to Lloyd's as they they have a hold on the property, this would leave me with around £58.000 to put towards buying another home, my thinking is if I go to end of my term they will only get what they agreed, I am offering more than they would get, in my eyes it sounds like a good deal,can you advise
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Foggy
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by Foggy » Wed May 17, 2017 7:04 pm
If you sell within the IVA they will be entitled to take enough to cover 100% of the original debt, plus fees and possible statutory interest. However, you can approach them with an OFFER to sell to clear the IVA --- this way round you can pick the offer amount .... if they do not agree, you don't sell and the IVA continues. I have seen it work this way with offers based on the remaining payments plus 12 for the equity.

I would also suggest having a word with Shaun Vickery -- he has access to products designed for this sort of situation to gain an early release from the IVA via a secured loan, which you can redeem when you sell after the IVA has concluded.

Shaun's details are here: memberlist.php?mode=viewprofile&u=22837

Remember -- if you sell to settle early, you will be unable to get a new mortgage for a few years as your credit file will still be shot.
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Lisa Thomas
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by Lisa Thomas » Thu May 18, 2017 8:58 am
Do NOT sell your home without getting a variation agreement form creditors first otherwise you will lose all of your equity unless and until the TOTAL debts PLUS statutory interest PLUS total costs have been paid in full. Only then would you get any surplus back.

Take Foggy's advice and offer to sell the property and pay the remaining contributions from the proceeds to finish the IVA early. If they reject this do not sell your home.

When did your IVA start and how much are your monthly payments?
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kevin961
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by kevin961 » Thu May 18, 2017 11:07 am
I am in a debt management plan with Payplan and have done 3 years during the 5 year term. The agreed figure at the end is £31,000. I have been self-employed for 23 years and am now employed. I wish to sell my property and have received an email from Payplan informing me that I owe £130,000. Can I make a payment of £40,000 plus an additional £12,000 to Payplan to pay off my debt?
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Lisa Thomas
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by Lisa Thomas » Thu May 18, 2017 11:13 am
Duplicate post - we have answered on your other thread Kevin - see here:

viewtopic.php?f=145&t=82611
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Lisa Thomas
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by Lisa Thomas » Thu May 18, 2017 11:13 am
It sounds to me like you are in an IVA, not a DMP.
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Foggy
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by Foggy » Thu May 18, 2017 11:36 am
Duplicate topics merged .
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