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Does an IVA only apply to unsecured debts? I currently have no equity in my home, but what happens at the end of the 5 years of an IVA if there is then equity available in the home, does it have to be given up? The reason I ask if because our children are paying to keep us in our home.

Yes IVAs only include unsecured debts, secured debts cannot be included. You would need to read your proposal but in most IVAs if there is equity in your property towards the end of the IVA and you cannot remortgage then usually an extra 12 months are added to the IVA.

Hello Mr S.

An IVA does only apply to unsecured debts which will typically be credit cards, store cards, bank loans and overdrafts.

They do not apply to secured credit such as a mortgage, secured loan, hire purchase or a lease.

If your property appreciates in value you may have to release some of this value by way of remortgage, but only if it is above a certain amount and only if it is possible to do so. Sometimes an IVA will be extended by a year in lieu of this where equity release isn't possible.

I'm sure that one of the IP's that posts here will supply further detail on your questions soon.

If your children are paying to keep you in your home, then they are developing a beneficial interest in the property which will absorb some or all of the equity you may have at the end of the five years. Make sure that your IP is aware of this, and that they are going to claim an interest when the time is right.

The secured loans will be taken into account when assessing your income and expenditure.