12mth into my IVA and want to sell my house
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Hi im twelve month into my IVA i had debts of £32000 due to redundancy divorce etc, They set my payment at £86 per month after my annual review its jumped up to £325 but we are still struggeling to pay the £86 never mind the increased amount we are due to pay. We think our only option is to sell our house and down size is this possible whilst in a IVA and if so how do i go about it ? ive been told about getting a full and final settlement figure but how do i go about this. Im worried that if we dont sell we are going to end up in even more debt due to the increased payment figure. Please help
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Speak to a debt charity like Stepchange, they can advise you.
But downsizing is simple in theory. Put house on market, use equity to pay IVA, then use difference as deposit for smaller house, or buy outright if there is enough equity to do so.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
For a protocol compliant IVA payment to climb that much there would normally have had to have been a really large increase in income. Is that the case?
If not, compare the financial statement used for your £86 with the one being proposed for the £325. I will happily have a look at both if you PM me, but that is up to you.
As for selling, it does depend on a lot of factors, but any windfall is captured by the IVA, so if there is enough in the way of proceeds you will need to clear the IVA in full, plus (probably) statutory interest at 8% and any fees outstanding. Unless the proceeds are large enough after all that to start again then you need to be very careful with that one.0 -
What has changed in your budget to increase your payment by so much ?
I would be very careful here, should you sell your house, the IVA will swallow up any equity up to the full value of what you owe to your debts.
Seek independent advice before you do anything.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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