IVA will we lose our house?

garynwendy

68k in debt and have just sent out our CCCS offers to all concerned. Mainly credit cards and one 23k loan not secured. Have a mortgage but no defaults. If they all agree to my offer then I can be free of debt in 10 years so long as they all stop the interest. Can I loose my house if we go via a IVA route? We only own 15 percent in the house. We spent like idiots and am now paying the heavy price. Life hell at the moment but at least this is a start.

Janey51

As I understand it, if you go for an IVA(and at least 75% of your creditors vote to accept) you would be expected to re-mortgage in the fourth year and your creditors would then have a share in the equity.
Don't panic. CCCS are very good as I'm sure you realise.

Hitme

Creditors will be looking for 75% of the equity in the property (or the persons share who takes out the IVA) normally during the 4th year. You may be able to continue payments for a sixth year in leiu of the remortgage if you can repay the equity amount.
Not sure when the equity in the house is decided though, i.e up front or at the start of the 4th year.
CCCS can advise and if they think you should consider this route (and you want too)they will put you in touch with an Insolvency Practitioner who will talk you though the whole thing.