IF i obtain an iva

[flamingohills]

IF i obtain an iva and at the end of the five years i have equity in my home can i be made to sell or remortgage to give the profit extra to loan companies. Also how much does your income have to be to arrange an iva.

[MelanieGiles]

Hi flamingohills and welcome to the forum

This is exactly what creditors will require you to do - but they will not insist on a sale. The usual provision is for you to have your property valued and then raise a mortgage based upon 85% of that value. Your existing mortgage is then paid off and the balance paid into the IVA. Creditors do not normally wish to see your increased mortgage payments at higher than 60% of the amount you are paying into the IVA.

There are no limits on income, but most practitioners will want to see a minimum contribution of at least £250 per month.

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

[iva_squirrel]

Hi flamingohills and welcome,

Your income is not relevant as long as you can a pay a minimum of £200 to your creditors.
If you have equity in you property then your creditors will require you to remortgage to raise the money to pay them back.

Regards,
Michelle P.

[Oliver]

Your income is only relevant in proportion to your reasonable living expenditure. In an IVA you will have to meet the minimum criteria of the majority of your creditors pro rata to the debt owing i.e. the bigger the debt the more you would need to pay as a minimum.

Please post some more details so we can advise you further.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva experts]

If you have a property creditors usually put a 4th year equity release clause in your report. This means that in the 4th year your house is to be valued and the amount of equity will be used towards part of your payment back to your creditors.

Best Regards. IVA Experts