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Hello

I am looking at the possibility of entering into an IVA but i have a question around the equity i currently have in my property that is co-owned by a friend and myself.

Within the details of the IVA it states that equity maybe used to pay off any outstanding debts however i only own 60% of the property and therefore 60% of the equity. Would they be entitled to take the all of the equity from the property (i.e. upto 100%) or would they only be entitled to my share (i.e. 60% of the equity).

Many Thanks

Only your share would be taken into account, I trust however that the 60% share was agreed upon purchase and that a deed declaring the shares was legally drawn up by your conyeyancing solicitors upon purchase and signed by both parties. If this is the case then you're on pretty watertight ground.

Hi there and welcome to the forum

Shared ownership property is a difficult one to deal with in an IVA, given that the opportunity to re-mortgage is limited to the terms of the ownwership agreement and market conditions.

I often deal with clients in similar situations such as yourself, and whilst we observe the current requirements under the IVA protocol, we make it pretty clear that re-mortgaging will be nigh impossible during the final year and that no further funds ought to be anticipated.

It will boil down to the circumstances of your individual case, but it is worth exploring further by chatting to an insolvency practitioner.