www.iva.co.uk

Hi,

My dad is currently considering bankruptcy or an IVA and we think IVA is the way forward rather than bankruptcy so that he may have a chance for credit in the long distant future.

What we wanted to do was set up the IVA (he currently has a DMP with Payplan and has done for the past 2 years) have it going for a few months, they would then sell their house which all four of us live in together (there is a very small amount of equity which would be shared between my parents as joint owners from the Mortgage) and myself and my mother would hopefully start a new Shared Ownership Mortgage.

This has all come about after attending a Court Hearing this morning regarding one of my father's smaller debts and having a Varied Order placed against the house. Both the Judge and the other party's Solicitor advised him to do this.

The main question for us is what happens with regard to the house and selling once the IVA has started?? Can he sell and then become a tenant in my home??

We don't know which way to go!!!

Hi there and welcome to the forum

How much does your Dad actually owe to creditors, and how much can he afford to pay each month.

There is no problem with him selling the property, and then becoming a tenant, so long as the transactions are all at full market value.

Thank you Melanie, I have just completed one of your referral forms online on behalf of my father who is just soooo confused about what to do!

He has just been given a perm contract at his new place of work and his debts total just over £44,000. The reason he was taken to court today was to have a Variation Order put in place against the property with regard to a company called Hillsden - they wanted it as security for a £3,100 debt (which was only £2,000 when he first got into difficulty!). They say they won't force sale of the house but we are not so sure. Their solicitor was obviously against him doing an IVA and suggested bankruptcy instead. The mortgage they have on the house is extortionate and they did want to start a new mortgage with another company but in the current climate, that will not now be an option.

Will the sale of the house be included in the IVA proposal (any equity would be needed for myself and my mother to buy somewhere else for us all to live) or can it be excluded?

Your Dad's equity in the property will need to be addressed if he is going to be proposing a voluntary arrangement, but let me advice you properly once we receive your details.

No problem, thank you so much. I have briefed him already - I think I may have been a bit out with some of the outgoings so you may need to double check with him what they are currently - especially as the bills are increasing!

He will be expecting your call (although he does work quite long shifts most of the week and doesn't know what he is doing until the day before he is due to do it!)