I would welcome any advice please. I am in an IVA , my husband is not. I would like some information around an early settlement to end the IVA, using equity from our joint property. The background: I have paid two years into my IVA, at 455 per month. My husband and I are separating, and he wants to sell the house. My share of the equity would be approx. 40k. I have calculated that if my IVA, continued for another 4 years (including the additional year for the equity release clause, I would pay in around 22k. My question is would I be able to put forward a f&f settlement offer of 25k (from my share of the equity) and keep the remaining equity as I will have to 1) relocate to another city 2) buy a car and 3) potentially find a new job. If I put forward this offer prior to our property being sold then I would continue paying into the IVA . Also, do I put this offer forward to my IP? And if the creditors reject it what happens? Thank you in advance and sorry for all the questions.
If equity is released by the sale of the house your IVA will take all of your share, up to the value of the balance of the full original debt, fees and possible statutory interest ... NOT just the remaining payments. You may be able to negotiate keeping some for housing going forward, but if that doesn't hit the figure above the IVA will continue.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk