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Posted: Fri Oct 17, 2008 6:00 pm
by nick4692
Good Morning
I am considering entering an IVA and from the research/online calculations I have done think i would qualify. I own two properties, both rented out (I subsidisethe mortgage on both of them) but one of the properties has a 30K secured loan against it. There is insufficient equity in the properties to make selling a realistic option neither do i wish to sell or lose the properties, however, I am concerned what happens with the secured loan on my propery if i entered an IVA? Would the secured loan come into the IVA arrangement and could a sale be forced? Or does the secured debt remain separate from the creditors in the IVA and must continue to be paid?
Please could someone advise?

Posted: Fri Oct 17, 2008 6:04 pm
by plasticdaft
The secured loan would have to be paid as normal. You may be forced to sell the properties given that you are having to subsidise both mortgages.
You would also be expected to release equity at some point during the IVA,usually the 4th year.
How much is your unsecured debt??

Posted: Fri Oct 17, 2008 8:43 pm
by MelanieGiles
Hi Nick and welcome to the forum

If you are subsisding shortfalls on buy to let properties, this will not be permitted in an IVA - indeed why would you want to do this in the first place?