www.iva.co.uk

I have been paying into an Iva for 5 years I have one child and I’m pregnant again with my second I’ve just addressed the equity clause in my Iva and they have agreed to extend it by 12 months this is my Iva alone not my husbands my husband would now like to move as we have another child on the way and my son is autistic so he needs his own space problem is all the equity in my house atm we need to buy a new house. How can I get round this? I really would like them to realease the property so we can buy a bigger home for our family. Payplan are saying that I can’t transfer the equity in my husbands name even tho it’s been addressed and 12 months have been added we are planning to buy a new home in my husbands name as his credit score is amazing and he doesn’t want my name to damage our chances of a new mortgage or his credit. HELP!!!

Something like this is in the hands of your IVA provider. Did you speak directly to your IP or one of his/her desk jockies? If not, I would get back on the them and insist you get to speak with the IP.

Hi,

Sorry to have heard of your problems - you are unlikely to be able to sell your house without approval and you will only be able to rent rather than buy but do speak to your IP.

Short of having the IVA end early with a full and final settlement there is little that you can do. You have got the 12 month extension because you are unable to release equity --- if you now sell you are releasing equity which will need to be paid to your creditors.

As your husband has an excellent credit record, could he not take a loan for a F&F offer, which you can pay back when you sell the house after the IVA has concluded?

You could put forward a F&F offer on basis of selling property and paying some of the equity into the IVA to settle it early....

I'm afraid to say that your hands may be tied as long as you are in the IVA, certainly if you need the equity from it to be able to buy a new property (as most people would!). As Lisa suggests however, it may be possible to release some of the equity as a temporary measure in order to offer a lump sum to settle the IVA early....then you would be free to sell the house and move on.

Actually, on re-reading her post, that's not quite what Lisa suggested...but it's another alternative.