Who gets money 1st from house sale

[andyjc]

We have an IVA with approx £33000 left to pay, on top of this we have 2 secured loans totalling £40000. equity in our property is 34000. We wish to sell our house and pay off as much of the secured loans as possible. Can we do this or must we pay off the IVA from the house sale?

[andyjc]

just to add another point, if we decide to pay off the IVA and not the secured loans is this allowed

[debbiw]

Hi Andyjc
Someone will be along soon to advise you. I didn't want you to think noone was listening. One of the experts will be along soon x

[Welsh Boy]

andyjc

I am not an Insolvency Practitioner but the way I see it, the loans are secured on your property and as such are priority debts. I don`t think you have the choice as the secured lender holds your property as security, but I may be wrong. Tony

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[andyjc]

thank you Tony, can i be stopped for any reason from selling my house when in an IVA?

[mikebdomain]

Hi Andy

Your first charge mortgage will be first to be paid in full followed by each of your secured charges depending on the date they were put on.

Your solicitor is duty bound to pay off the secured charges prior to releasing any balance to you.

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[MelanieGiles]

You will need to check the terms of your IVA proposal to see whether you are permitted to sell your property, but if you have an equity release clause you will be obliged to ensure that you do nothing to jeopardise your ultimate compliance with this.

Is your intention to sell and purchase a new property, or go into rented accomodation?

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

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[andyjc]

Our intention is to emigrate. I do believe there is an equity release clause on our IVA

[MelanieGiles]

But will you buy a property in the new country or rent?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
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[andyjc]

it will be rented