Hello,
I am writing as I would like an advice about what would happen if I sold the property I live in whilst on IVA.
My problem is that I live in a shared ownership property (part buy, part rent) jointly owned with my ex partner (but I applied for IVA after we split up) but as we only own a share of it and property prices in our area have fallen, after splitting of what we would get with my ex I wouldn't have enough to cover my debt (it would only cover 50-60% off it).
As the main reason to why I want to sell is so I can cut all ties with my ex, I am still considering selling the property, but can anyone explain what would happen in my case? If I paid over half of my debt, would I still need to make full monthly payments for the remaining of the agreement (which seems illogical to me) or would they be reduced after paying a lump sum towards my debt?
Appreciate all advice
If you sell your IVA will take your share of the equity and this will simply be added to your 'IVA pot' for the benefit of your creditors --- you will continue to pay the agreed monthly payments until the end of the IVA or until you pay back all of the original debt, plus fees and possible statutory interest.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
So it seems it is best to just stay where I am until my IVA ends...
Was hoping that maybe if I paid the lump sum towards the debt my monthly payments would reduce.
Can anyone please also explain if the remaining time of my IVA would change if I paid ~60% of what I owe early?
I now understand that monthly repayments would not change, but what about the remaining length of time of my IVA agreement?
As if I owe £12000 (including all credit fix fees), and continue making monthly repayments of £217 per month (I have already been paying in for almost year and a half) I will end up paying in more than I owe?
I am really confused about how it all works (and I don't really even understand why I should be made to remortgage at the end of my IVA agreement as if I continue paying agreed amount my whole debt should be cleared by the end of 5 year period as it is).
Can anyone shine a bit more light on this for me please?
During an IVA you still actually owe the full original debt, plus fees and possible statutory interest. the IVA will only end early if you pay back that total amount, or if you make a lump sum offer that is acceptable to the creditors -- usually based on the agreed payments.
If you paid in, say, a lottery win, of £5000, your creditors would simply be £5000 better off (less fees) and your regular payment will continue as agreed until the end of the agreed term, or you hit that total figure mentioned above.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The chances are that you won't be able to remortgage but, depending on your terms and conditions you may be offered a secured loan which sometimes works out cheaper in the long run.
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
