www.iva.co.uk

Can I sell my house and if so how much will I have to give to my IVA. I have been in the IVA for 4 or so years and was looking forward to October 2014 being 5 years. I was told in January that I will have to carry on until October 2015 if I can't remortage, which I don't want to do

Hi and welcome

If you sell your house then your share of any equity may have to be paid into your IVA I'm afraid, maximum would be an amount that would repay your creditors 100p dividend

Regards

Will the amount I have already paid over the past 4 years be deducted off the IVA

Yes Donna - of course the money you have already paid in will have been already paid to creditors largely, less the costs of running the IVA.

What is your property currently worth, and how much do you owe on your mortgage?

Hi Melanie,

My property is worth around £300,000 and my mortgage is £170,000.

What my concern is that how can I afford a re-mortgage. My current mortgage is interest only so it is reasonable low rate, which I can just about afford.

Particularly given your mortgage position it may be possible to raise short term funds elsewhere in order to be able to make an offer of 'full and final settlement' to your creditors ie. settle your IVA early. Then you would be free to sell the property and keep the remaining equity. Whether it's suitable for you, and the amounts involved, will depend on your individual circumstances.

Would you have any idea what kind of payment I could offer as a full and final settlement. I will reach the 54 month in April.

It would depend on quite a number of factors including your present IVA contribution, your age etc. and assuming that you have an equity release clause in your IVA (in which case your offer would have to take this into account). Ultimately what you would be trying to do is put forward a proposal you can afford which would be enough to tempt your creditors into accepting.

Thanks for your help Shaun.