What happens to your house if you go into a iva

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supers

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Post by supers » Mon Aug 20, 2007 12:13 pm
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Hi. What happens to your house if you go into a iva.I have a house worth £150000 with a mortgage of £120000, will i have to sell my house or release equity or am i allowed to keep the equity in the house?I i am accepted for a iva at the end of the iva what happens with the equity in the house?
I hope some on could advice me on this
Mr Worried
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Adam Davies

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Post by Adam Davies » Mon Aug 20, 2007 12:20 pm
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Hi
You will almost certainly have to release equity to your creditors in the fourth year of your IVA.This will be 85% of your equity upto a maximum cost of 60% of your disposible income.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp
Andam Davies
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MelanieGiles

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Post by MelanieGiles » Mon Aug 20, 2007 12:22 pm
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The general rule is that creditors will expect you to have the property revalued during the final year, with you then raising a remortgage based upon 85% loan to value. You will then need to repay your existing secured borrowings and introduce the balance of any monies left over into the IVA for the benefit of your creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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