www.iva.co.uk

Hi All,

I have been in IVA for a year now and come to the realisation that I do not want to keep my house as it is riddled with damp and I have a young child and I am not going to be in a position to get it fixed for a long long time.

I have found a house to rent which all going well I will be moving into in the new year.

I plan to give the keys back to the mortgage people and move on with my life.

My question is while in IVa they have that order on your house that you cant sell it. Will I be ok to just give the keys back? the house is in about 40k negative equity (mortgage prisoner from 2007 ... 125% mortgage) I? know that teh mortgage people are likely to chase be for the negative equity and I am quite happy to go bankrupt and start a fresh,

However I need to know if I fail IVA will they send me bankrupt or will I more than likely have to file bankruptcy myself and pay the fees?

Sorry its long any help or advice appreciated
xx

It depends on what clauses are in your agreement. Generally you would have to file yourself, but some arrangements have provision for the IP to do it.

You need to speak to your IP.

This might have been classed as a contingent debt at the start of the IVA and therefore be included, or there is a risk it might be classed as a new post IVA debt when the property is handed back/property sold and shortfall known, in which case you wil need to consider how to deal with it.

I would hope it would be the former and you can avoid failure/potential Bankruptcy.

You might need to take advice from a specialist insolvency Solicitor to ensure the debt forms part of your IVA.