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    • waldo2178
    • By waldo2178 7th Nov 17, 10:18 PM
    • 1Posts
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    waldo2178
    12mth into my IVA and want to sell my house
    • #1
    • 7th Nov 17, 10:18 PM
    12mth into my IVA and want to sell my house 7th Nov 17 at 10:18 PM
    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
Page 1
    • StopIt
    • By StopIt 8th Nov 17, 9:43 AM
    • 1,371 Posts
    • 1,169 Thanks
    StopIt
    • #2
    • 8th Nov 17, 9:43 AM
    • #2
    • 8th Nov 17, 9:43 AM
    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.
    • DorisTrousers
    • By DorisTrousers 8th Nov 17, 11:00 AM
    • 492 Posts
    • 286 Thanks
    DorisTrousers
    • #3
    • 8th Nov 17, 11:00 AM
    • #3
    • 8th Nov 17, 11:00 AM
    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.
    • sourcrates
    • By sourcrates 8th Nov 17, 10:35 PM
    • 12,432 Posts
    • 11,837 Thanks
    sourcrates
    • #4
    • 8th Nov 17, 10:35 PM
    • #4
    • 8th Nov 17, 10:35 PM
    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 Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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