Will we keep any equity?

[Newbiedoo]

Hi, my husband and I both have IVAs (seperate ones) we have about £10k equity in our house and are thinking of selling up and going into rented. Will we keep any of this equity we have 3 years left on our IVAs. Thanks.

[Foggy]

You should be allowed to keep the costs of selling up and renting ( deposit, advance rental etc.) as agreed beforehand with your IP. However, your proposal, presumably, states that you have to introduce the equity during the final year, and the creditors will want to see this done, one way or another.

[ginger3232]

You likely to be able to keep removal costs/selling fees and some advance rent - but most (if any) is likely to be use into the IVA pot

[Newbiedoo]

Ok thanks, kust had some conflicting info, I was told that if it was under £5k each we would be able to keep the money, someone else said that they would take 85% and we would keep 15% each...hence the confusion!

[Foggy]

If,in general and in protocol complaint proposals, at the end of the IVA you have more than £5k equity you are expected to attempt to release it. If less, the IVA ends at month 60 (assuming a 60 month term). At the moment releasing it isn't possible, so the IVA usually gets extended by 12 months instead.

If you sell early, or come into any other money, that is classed as a windfall and is payable into the IVA if it is more than £500 (hundred).