www.iva.co.uk

Hi,

I am just about to finish the first year of my IVA. I would just like to know how things would work if I sold my property (I currently rent, and let out the property that I own) soon.

I know that I need to release equity in year 4, but am not sure how things would work if I sold before then.

In an ideal world, I would sell and use the equity to finish my IVA early. Would this be possible. The equity and debt are *roughly* the same (depending on how much my property would actually sell for).

Thanks in advance.

Hi Neilo1978 and welcome!

If the house is included in the IVA you *must* discuss this with your IP. There is probably a restriction placed on the property which would prevent you from selling it anyway.

If you are somehow unable to make your monthly contributions then your creditors may allow you to sell early and use this money to settle the IVA, but your IP will advise you on how likely this is.

If you still have a surplus creditors would expect your IVA to continue for the remainder of the five year period unless the debts and costs were cleared in full. However, bear in mind any liability to capital gains tax when you do sell otherwise you could end up with a discharged IVA and a nasty tax bill.

This would probably need the express sanction of creditors at a creditors meeting.

Thanks very much for the replies. I'll get it valued and then speak to my IP.