Splitting with partner and he has the IVA in his name and it is in the first year coming up this July. The house has equity in it and would pay off his IVA in full and the sale of the property would pay my own debts to creditors. How do we go about getting the IVA lifted off the house or asking for permission by Money and debt limited to sell. We cannot continue anymore int his situation.
Sorry to hear of your problems. You need to speak to MDC and inform them of the situation.
When you say that it would pay his IVA off in full, do you mean the amount owed to the IVA or the whole amount owed to the creditors?
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
What is MDC?
When you say IVA amount and Creditor amount, does that mean the extra that the company have charged for the process in the first place?
Helen
Sorry, I thouhjt you were with Money, debt and credit.
Your partnervwill always be liable for the full amount of debt until the IVA is completed,
Will the sale of the house cover the IVA or pay off the debt in full plus IP fees?
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sorry Jan, yes with MDC, just realised it was an abbreviation. The sale of the house from his half would pay off the IVA, but I dont understand how it will work fully. I thought that if the house sells then the IVA can be paid off , if the debt was 19,000 surely this is the amount that is then paid off?, or does the IVA still want their overall fees on top as if the whole process was still going to last the full five years? This would then free him of the IVA and he could move forward without any debt. Their would be enough equity to do this, and I would still be able to pay my own debt which is with my half of the house, it would leave some money after that but that would be for each of us to start a fresh. Am I wrong in thinking this is how it all works? Thanks for replying Jan, I am getting tad concerned that this process is going to be a long one as need the house on the market before I cant pay the mortgage too much longer.
Thanks Helen
If £19,000 is the full amount of his debts then it will pay it off and there will still be fees or is the £19k the amount he agreed to pay to the IVA?
You will need the permission of the IP to sell the house as there will have been a restriction placed on it at Land Registry.
Speak to MDC asap about this.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
Jan, thanks for replying. 19,000 is the debt in full. So does this mean there will be the fees to the IVA that they would of taken. I presume the 19,000 would be the amount we would have to pay back as only been in the IVA for a year this June, and pay 220.00 a month for it?
Helen
If the sale of the house will cover the £19,000 plus fees then he will have to pay that back, but of course the fees will be less than they would have been as the IVA will complete in less time than normal.
The IP will be the best one to tell you exactly what is what.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
It's unlikely. The funds will be used to clear the debts and the creditors will be quite happy if they ate paid back in full.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
There would have been a restriction placed on the property so that it can't be sold without permission from the supervisor of your partner's IVA.
The first thing your partner should do is contact his IVA company for further instructions. They will remove the restriction and advise on how much will have to be paid into the IVA. They will take into consideration any relocation costs and fees involved in the sale.
Relocation costs? I have sat and worked out the equity in the house as once sold it would leave 28,000 each. I contacted MDC and they said that he has paid 2,270 already and if they took that off then he would pay 10,000, however if there is equity on his side of the sale then he would owe the amount of 23,000 which is the full amount. Can they do that? It would only leave him about 5,000 to start all over again. I have my own debts such as credit cards and mine totals 26,000 debt with a loan, so I would be way worse off than him anyway. Is this how it works.
MDC said that the house can go on the market and then when it comes to nearing completion of a sale that our solicitor then sends a draught completion statement to the MDC so that they can then contact Land Registry to have the IVA lfted and the sale goes ahead, the lifting takes up to 7 days. Is this all correct?
Helen
If your partner will receive around £28k from the sale of the property, he will have to offer most of that into the IVA in full and final settlement of his debts.
If he has any other costs he needs to cover, he should contact MDC and they will be able to advise further.
