Hypothetical question-
We're in an IVA
Wife looses job -has to take lower paid job- IVA payment can't be met
Sell house - approx 12K equity
Manage to rent !
Rent is lower than mortgage so IVA payment can continue
Assume Equity passed over to IP for distribution(do we keep 15%?)
Hi
In theory yes, but should it happen in reality, it would all be dependent on the figures presented. So, for example if the rent payment is significantly lower than the mortgage and enough to cover the shortfall in wage, then it shouldn’t affect a great deal, but if the rent is similar to the mortgage and the shortfall in wages is significant enough, then it may have a serious effect on the IVA. Either way, and counting the equity, it’s likely that your IP will need to gave this case some serious review.
You ought to be able to retain up to 15% of the sale proceeds if the house sells during the IVA, but you may need to hand over more if you want to offer a full and final settlement. At the end of the day, this sort of query may only be resolved by specific variation of the IVA.
