If I was to cancel my current IVA which has run for 2 years and make offers to my creditors using the equity gained from my house sale, what percentage should I offer them.(Not enough equity to repay all 100%)
You can't cancel an iva, you can only let it fail by not paying 3 consecutive payments, what will happen then is that your creditors will likely backdate interest and charges on your original debts from the date your iva was accepted and you will likely find that your 2 years of payments will not have made a dent in the debt, and in fact you could be in a position that you owe more than you did before the iva started.
Why not offer to close the IVA with the sale? You may be entitled to 15% of the equity in the property to move forward so speak to your IP. It would be potentially disastrous to fail the IVA as your IP could make you bankrupt and all the house proceeds would be lost.
Rather than 'cancel' the IVA you may be able to make an offer to settle the IVA early? I imagine it would depend on of the potential equity, the amount that your creditors would receive if your IVA were to run it's course, and your personal circumstances. Has there been a change in your circumstances?
I undertand that an IVA often has a clause which mean in the last year of your IVA equity in your home must be paid into the IVA anyway.
