I have an IVA in place through CREDITFIX, I must admit I did not understand what was involved, I struggled to pay £250 pm, until I had to get in touch and say I was struggling, I approached the housing association that owns half of my property and they have agreed to purchse it, I can then pay off my priorty debts first and them the other outsanding debt. I new one of the debts I had was attached to my property. On speaking to my solicitor CREDITFIX have a restriction on the property so they have to be consulted before I can sell, are they allowed to do this within us knowing. I dont think this is right they have had a sum of money at the begining of the IVA.
You would have been asked to sign an RX1 form which means that you cannot sell your property without permission. This is what happens with all IVAs and should have been explained to you.
If you made any payments upfront then this would probably have been for the firm to introduce you to an IP and do the initial legwork for you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Hi Paula, the restriction is there to protect your creditors interest and to prevent you from selling / re mortgage the property without the IP's consent.
If you are looking to sell the property to the hosing ass to free up some disposable income in order to maintain the payments to the IVA and there is no equity in it then i would not see why it would be a problem.
You need to speak with your IP and explain what and why you are proposing to sell the property, they will be best to give you advice as they understand your circumstances best.
Hi Paula. What do you mean by priority debts? Have you got behind with things while struggling in the IVA or is the IVA the priority you are proposing to pay off with the proceeds of the sale? You may find the proposal or chairman's report has given creditors an interest in your property. You definitely need a conversation with your IP before proceeding with the sale, not least because if you are moving to rented you will need to retain a chunk of money to fund your move into rented accommodation (poss six months rent plus a month or two for deposit). let us know how you get on x
Hi Paula and welcome to the forum,any equity released through the sale of your house would have to be put into your iva pot until the full dividend and fees were met.through a variation meeting you may be allowed to keep some of the money for contingencies,otherwise any equity release would be classed as a windfall.its important to discuss this with your IP to see what your options are.
