IVA - Is this true?

Diana_Prince

But it's better than selling?! Yeh will have to speak to an IVA advisor or something, cuz both my parents are 60 so I guess remortgaging will be tough

BeautyandtheBeast_3

cant the parents sell the house to you 2. therefore you 2 would just need to get a mortgage for £50k. would that work?

Diana_Prince

I think they'd check that out as well! Sell the house for 50k?!

BeautyandtheBeast_3

Its a gift? you can sell your house for whatever you wish i believe. x
fingers crossed you can sort it for you parents xx

Diana_Prince

Ahhh I see! Well maybe we could look into doing that then! Thanks! If there's anyone out there who's been on an IVA and not sold their house would like to hear from them!!!

RAS

Please can you get some proper advice from a debt charity, as your current understanding seems to be muddled. See here http://www.moneysavingexpert.com/loans/debt-help-plan#help

Even if there is a charging order on the house, the courts would not force a sale if dad is making a resonable attempt to pay the creditor. But when the house is sold, the creditor takes their money.

It is great pity you cannot get dad on here as there are quite a few things that could be done to prevent charging orders being placed on the house. See this thread http://forums.moneysavingexpert.com/showthread.html?t=1839539

It will post some links in a minute.

tallyhoh

Please dont try transferring or selling the house for a nominal price. It would be viewed as depriving creditors of money or hiding assets.

Look at this link for more information.

http://www.insolvency.gov.uk/

RAS

Thanks tallyhoh - that was what I was looking for.

Please DP, take proper advice as several of the suggested schemes would get you into hot water.

Also think very carefully about this as it would have a major impact on your own credit rating.

And if you transfer ownership, you have to pay the creditor who has the charging order when the transfer takes place (subject to blueback's thread) whereas if you leave it, it could be decades before the creditor has to be paid.

Diana_Prince

Thanks for the advice. I'm in no position to buy the house for ANY amount!! I don't think I would if I could anyway as I am pretty certain it is illegal! Unless I bought it for market value - I think even then it would be viewed as a bit dodgy!

I have told him that IVA's are possible without selling the house, just may have to release some equity which he was going to anyway!! He was in no mood to talk to me last night tho so will leave it a couple days and then try again!

RAS

Diana_Prince wrote: »

I have told him that IVA's are possible without selling the house, just may have to release some equity which he was going to anyway.

Why are you so sold on an IVA?

If he does not pay that properly, he will end up bankrupt.

And as with bankruptcy, because there is a huge amount of equity, he will have to release that in year 4 anyway, so it is quite possible that an IVA will cost him more than straight repayment. it has been known for that to happen (because the IP's fees are £5,000 - £7,000).

Please get proper advice. It may be that a DMP would tide him over, but he neds to get proper advice from a debt charity and or business help line.