IVA or BR?

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skint34

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Post by skint34 » Thu Sep 04, 2008 5:54 am
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Hi,
excellant site, very helpful!
Can someone please help with my question
I have just started an IVA. My house is worth around £140,000 but the
mortgage is £108,000 + a tie in of £3000 for 3 years,+ a secured loan of £45,000 making a total of £156,000.
I cannot imagine there will be any equity in year 4???, would I have to pay for a sixth year?(there is an equity release clause in IVA).
Also having 2 young children would i get to keep the house if I went bankrupt?
Many Thanks
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plasticdaft

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Post by plasticdaft » Thu Sep 04, 2008 6:51 am
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If you have just started the IVA is there a reason you are already thinking about BR??

If unable to release equity you will most likely have to carry on paying for an extra year(this would be in your IVA paperwork).

Good luck.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
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MelanieGiles

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Post by MelanieGiles » Thu Sep 04, 2008 9:25 am
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It will depend upon the way your IP words the proposal, whether they use the IVA protocol in their practice, and whether creditors seek to modify the terms of the arrangement.

Under current IVA protocol, there is no requirement to pay additional contributions, however a number of creditors are seeking to modify this in anyway, so it perhaps best to be prepared for this if you do have equity at that point in time.
Regards, Melanie Giles, Insolvency Practitioner
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