An IVA Loophole?

nellis10

I was watching an advert today for an IVA and I just starting thinking. Here me out and before anyone condemns me, it's my idle mind wandering!!!

Say you had a mortgage for £XX000 over 25yrs fully flexible. You have no debts to speak of but moseying along. What's to stop you taking out £XXK of unsecured loans and using them to pay off your mortgage. Then you leave your job or something so your income falls and you can't pay it back. So you then go for an IVA and drop to 25% of your debts - £XXK/4 and pay it off over 5yrs...You are then debt free and mortgage free within 5yrs. Credit shot to pieces yes....but you'd be debt free too.

Now I'm not condoning it nor do I even know if it is possible...but I wonder if anyone ever thought of it and tried it?

See that's what those adverts to do you...send your mind wandering all over the place!!

cattie1

i think that may be classed as fraud though? i understand where you are coming from but if they were to investigate...................! you'd have to be really clever too, so thats me knackered! lol

CLAPTON

say your creditor decides to

a. make you bankrupt and force the sale of your house

b. secure their debt on your house

c. in an IVA they will want some of the equity on your house

and other things.

nellis10

LMAO...there is no way I'd try it either....I'm the sort that would get done for under paying 1p in tax!!!!

But it just set my mind wandering about what sort of investigations are done by the IVA people into how the debt was incurred and if there has to be proof of purchases or something? Otherwise it would be a form of high risk stoozing or something!!

nellis10

CLAPTON wrote:

say your creditor decides to

a. make you bankrupt and force the sale of your house

b. secure their debt on your house

c. in an IVA they will want some of the equity on your house

and other things.

Yup, but other people seem to only have to be able to afford the repayments and CCCS or payplan work it all out for them to do an IVA over 5yrs and only pay back 25%.

As I said, I'm not considering this or condoning it, I just wanted to start a little debate on whether it was possible

La_Tristesse_Durera

Haha, that's genius!! I'm not going to try it though, I'm not brave enough and I have the worst luck ever!