IVA & House intestate.

AVal

Tell me about it. I'll certainly be doing that once all this is completed.

Mortgage wise, there was about £1,000 left when mum died, and as the broker wouldn't allow me to transfer the loan into my name (after saying that they could, always dealing with 'professionals' me) I decided to use some savings to clear it.

As long as all of their names go onto the property deed, and maybe get something in writing regarding my living in the house?

AVal

Right, after some discussion and other recent personal events, I've decided that selling the house may be the best step.

Therefore, once the house is sold and my brother gets his share, does he take into account what has already been paid to DFD, or has he lost £10,000?

Charco_2

Not sure I know what you mean!?

This would be a windfall and would have to be paid into your brother's IVA. Then your brother would continue to make his monthly payments towards his IVA until the end of his five years.

This WINDFALL is over and above what he has already signed up to contribute towards his IVA.

So the £10k he has paid in is not lost, it goes towards the debts he has entered into his IVA.

The only way this would end his IVA is if the money from the sale of the house is more than his original debts, plus 8% annual interest, plus his IPs fees to date.

AVal

I think that explains it. Basically I'd take £10,000 from his share for DFD (not from him obviously).

It makes sense, as why would we offer to pay £10k over what he borrowed in the first place?