House sale in an IVA

[bluemoon]

Hi,
We have appplied to enter an IVA & are waiting for the date of the creditors meeting.
We have debts of £29,000 & approx £25,000 equity in our house. We have tried to remortgage but haven't been able to raise enough to pay off all our debts, we can only raise £15,000.
If when in an IVA with a 4th year equity release, what would happen if we sold our house in the first year ( my Wife's Father is ill & we might move to Scotland to be nearer him)?
Are we allowed to sell the house whilst in an IVA ?
Would our creditors take 100% of the sale profits or could we keep a small amount for removal & initial rent/bond costs ?
If say £25,000 is given to creditors when our house is sold would we still have to stay in an IVA to repay the remaining £4,000 or would our IP be able to get a settlement figure around the same ?
Do we still pay the IP costs for the 5 years ?
Sorry if i'm not making much sense but my brain is all 'fuzzy' at the moment with all the stress.
Thanks in advance

[MelanieGiles]

Hi bluemoon

What advice has your own IP given to you on these very important issues?

In your case, I assume that you are going to be paying contributions for five years and then an equity release at the end. Given that you also might be moving house in the near future, are you really sure that an IVA with its associated costs is the right way forward for you?

I would have thought a DMP with an equity release when the house is sold or re-mortgaged is a more sensible and cost-effective solution for you and your creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
I agree with Melanie.
Do not rush into an IVA just yet.You need to look at all your options because your house is involved.
If you are thinking of selling up within the next five years then a DMP is an option that you should explore in detail.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp