What if I sold my house and didn't tell my IP?

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martin236

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Post by martin236 » Wed Nov 06, 2019 8:19 pm
Hi. What are consequences of selling a house while on iva and not informing iva practitioner about it.
Also how would practitioner find out about selling my house.

recovering

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Post by recovering » Wed Nov 06, 2019 8:22 pm
You have a restriction on your house which means you IP would be informed

kallis3

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Post by kallis3 » Wed Nov 06, 2019 8:45 pm
You should have a restriction on the sale - you IP will know about it.
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Foggy

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Post by Foggy » Wed Nov 06, 2019 8:47 pm
As recovering has said, the IP should have a restriction placed on the property and will be alerted. If there is no restriction due to an oversight ( it does happen) and you sell and they later get wind of it, the IVA will fail and creditors could bankrupt you and reverse the sale. Ultimately you could find yourself in front of the beak on fraud charges.
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luluj

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Post by luluj » Wed Nov 06, 2019 11:43 pm
Why would you want to risk your iva now it's in place and will be cleared in 5 /6 years?

A restriction as others have said will exist so it will automatically raise a red flag alert and your IP will know - why risk it?

If you speak to your IP, explain why you are considering selling, and then look to consider your options.

Guessing your thinking is to release equity - well if done, that becomes a windfall and is added to your iva pot of money to send to creditors...you won't see any of it.

Not sure there are any benefits in doing so, just huge risk of iva failure in my opinion and being in breach of your conditions
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WallE

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Post by WallE » Thu Nov 07, 2019 3:49 pm
Do you recall signing an RX1 form at the start of your IVA? This places a restriction on your property that will essentially notify the IP if a sale is attempted.

If by some admin error the IP has not placed a restriction; tread very carefully. It'll still be in your T's and C's and the IP and/or the creditors may have it in their power to petition for your bankruptcy etc for undeclared disposal of an asset.

If you were planning to offer the funds in settlement, the IP would ask for proof of origin of funds for anti money laundering reasons, so again; that leaves you open to them finding out.

Is this hypothetical or have you sold a property?

As before; tread carefully :)

martin236

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Post by martin236 » Fri Nov 08, 2019 5:37 am
I didn't sell property yet.
My partner who own half of house wants to sell it as we are splitting.
We are not married and she is not included in iva.
I'm trying to find best solution

Lisa Thomas

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Post by Lisa Thomas » Fri Nov 08, 2019 3:33 pm
Propose a variation to sell the house voluntarily and pay some/all of the equity into the IVA as a full and final settlement (depending on the figures)

How much is your share of equity and how much do you have left to pay in the IVA (assuming it is contributions based?)
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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