Selling in Year Two?

[Fast]

We have a house and we would like to sell it. My partner owns the property and "there are no funds by way of re-mortgage" at the time of the IVA arrangement approximately one year ago. The house value has increased meaning there is now equity, but not enough to clear the IVA & secured debts. Can we sell it? What would happen to the equity as we cant afford to make a F&F, and we cant afford a new house so we would have to go into rented. This would mean our outgoings would reduce and allow us to make much higher IVA payments. No fourth year clause, although it does say creditors have a "registered interest in the property" what does this mean?
So.....
Can we sell the house and move into rented?

[catullus]

Hello Fast

Your post is a bit confusing particularly because I don't know what "there are no funds by way of remortgage" means as stated in your post.

However,it's possible to deduce from your post that the Supervisor considers that he/she has an interest in the equity of your house which means that if you do sell, he/she will want some/all of the equity that you realise.

You seem to have taken the view that, whatever sum would be released, would not be enough to offer the creditors an F&F and without any numbers I can't comment but, if I was you, in advance of a sale (which is entirely possible) I would contact the IP and agree a sum of money that you should keep out of the equity to pay for the cost of moving/setting up in rented accomodation ( costs more than you might think) and that way you'll get some extra spending money and the IP won't get a nasty surprise when he finds out you are planning to sell the house and haven't told him.

[MelanieGiles]

It is strange that you have no requirement to raise equity, yet your Supervisor retains an interest in the property! This may be the result of you having no equity at the start of the IVA, but as Carullus has already stated refer to your own IP as this is quite important and they will have detailed knowledge of your case.

In principle, if the asset was excluded, there is no reason why the sale proceeds cannot be offered to creditors by way of a settlement, but your offer will need to provide something similar to that originally accepted by creditors.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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[Fast]

Ok

We now have offers on the property over the asking price! Now there is a chance of making a F&FS! Just hope the buyers can hold out until the supervisor gets back to the office and can tell me what to do next.


If I can offer what the IVA payments are over the term of the IVA is it likely that they will refuse? I have taken into consideration of everything that I can think of with costs of "moving on" into rented.

[Adam Davies]

Hi
You are in with a good chance if you can raise the equivelent of the remaining payments
Regards

Andy Davie
IVA.co.uk Spokesperson

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

IVA Helpline: 0800 197 4838
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