www.iva.co.uk

I may have to enter an IVA. Last year I bought a house that (in theory) if I do it up could sell at quite a lot more than the cost of purchase and doing it up. I'd like to sell as soon as the work is finished. This would be before the IVA is finished. Will I then have give up any money made to the sum of the debts. Would it be the original debt amount or the agreed amount to be paid back. Would it be beneficial to put my partner on the mortgage? thanks

Idf you sell the house prior to the IVA it will not form part of the arrangement, however, any proceeds you keep will be considered an asset and will be, rightfully, used to repay debt. Until you finish an IVA the original debt amount, plus fees as well as statutory interest is payable.

In addition to what Foggy says it could be pointless and expensive to put your partner on the mortgage. This is giving away an asset which could be challenged in bankruptcy but must also be disclosed in an IVA.

If you put your partner on the mortgage, in addition to the other comments, their credit rating would take a hit

It would be better if you could agree to freeze debt and interest with creditors direct to buy you enough time to sell the property, otherwise it will cost you a lot more through the IVA.