www.iva.co.uk

now live in France, although I still have UK bank accounts and income. I also have UK debts of about £125,000 owed to the Inland Revenue, various bank loans and credit cards. How easy is it for me to get an IVA? Or is it not possible?

Hi m123 and welcome to the forum

It is not impossible to get an IVA if you live in France, and I have acted for a number of people in your situation over the last couple of years.

How would you fund the offer - ongoing contributions, asset realisations or a combination of both?

Hi Melanie

Thanks for your reply. I still earn money through a UK business - I am self-employed - and would want to fund the IVA through that. The problem is that the amount I earn is substantially less than I need to repay my current debts.

I don't really have assets to realise. My only asset now is a house jointly owned with my wife, on which I have a French mortgage.

What equity is there in the property?

Yes there is about £150,000, depending on the exchange rate, of which my share is £75,000 as the house is jointly owned by my wife. However, in France, equity release is not allowed - I already went down that route - and in any case, French law limits mortgage repayments to 35 per cent of income - and I am already at that limit.

With £75k of equity in the property, your creditors will expect to share some of that, so if you will not agree to sell the property to release your share a DMP is probably your best option - albeit with the level of debts you currently have this could be very long winded.

Hi Melanie

Thanks very much for the comprehensive replies. I guess I need to find a way to release some equity, although it will not be easy.

If a sale is possible, you could offer an IVA based upon the introduction of a lump sum from you share of the equity which could run for a 12 month period. This can be done prior to the sale being effected, so long as it is entered into with the intention to release equity.