How does an IVA affect house equity

matta_2

My wife has made enquiries with a debt management company regarding dealing with our, but mostly my substantial debt (they were a private company not one recommended on here). She was advised that if I went down the IVA route that the equity we have in our house would not count as an asset for which the credit card companies could come after me for.
Any advice would be most welcome. We have a mortgage and around £150K equity in the house, but cannot aford to sell or do much really. Remortgage may be a possibility. No bad credit record, ccj's or missed payments.

TallGirl

You can only do an IVA if you are insolvent that means your liabilites outweigh your assests. So in your case if the equity is split 50:50 with your wife your assests are £75,000 so you can only do an IVA if your debts are more than £75,000.

In an IVA as well as monthly payments over 5 years the crediotrs look for you to release about 70% of your share of the equity so you need to take that in to account. Small Insolvency Practitioners often do not do that many personal IVA's so you may be better of getting advice from someone like Payplan. However firstly write down your income your expenses and your total amount of debt between you as you will need that before anyone can advice your correctlt. Remember an IVA is individual so you would both need one each if any of your debts are joint. Good luck with it.

taplady

TallGirl wrote:

Remember an IVA is individual so you would both need one each if any of your debts are joint. Good luck with it.

My OH and I are in a joint IVA, both named on it and only 1 payment per month not 1 each.

chevalier

I think that the thing with an IVA is that you HAVE to keep to the terms of it, and there is little or no leeway, with regard to payments etc. I would suggest that you contact the CCCS or Payplan who will have be able to help you for FREE.

If you post a Statement of Affairs (SOA) (see the sticky from southerscouser at the top of the forum page) then there may be savings to be made, to help bring the spending under control.

If you have a good credit record still, can you balance transfer some of the debts onto 0% interest cards etc?

Best of luck
chev

TallGirl

My OH and I are in a joint IVA, both named on it and only 1 payment per month not 1 each.

Taplady you cannot have a joint IVA that is why it is called Individual Volentary Arrangement. You have to go through a recognised IP to propose it so check again perhaps you are in a DMP or your company has just allowed you to make one joint payment.

notmyrealusername

You can have a joint IVA with your partner, below is taken from an insolvency website...

IVA FAQ - Frequently Asked Questions About The Individual Voluntary Arrangement
Can my wife and I start a joint IVA?

Yes. Indeed many couples seek the relief that can be realised by undertaking a joint IVA proposal to deal with their combined debt issues.

The IVA process is not different than that involved in undertaking a single IVA proposal other than all of the couples debts are brought into the equation. The income and expenditure assessment would also take into consideration the earnings of the couple together and this would form the basis of the IVA proposal to their creditors.

TallGirl

I don't want to start an argument but they are still individual as they will have eachs persons debts on them. If you look closer you will also have to pay two sets of fees.

taplady

notmyrealusername wrote:

You can have a joint IVA with your partner, below is taken from an insolvency website...

IVA FAQ - Frequently Asked Questions About The Individual Voluntary Arrangement
Can my wife and I start a joint IVA?

Yes. Indeed many couples seek the relief that can be realised by undertaking a joint IVA proposal to deal with their combined debt issues.

The IVA process is not different than that involved in undertaking a single IVA proposal other than all of the couples debts are brought into the equation. The income and expenditure assessment would also take into consideration the earnings of the couple together and this would form the basis of the IVA proposal to their creditors.

This is what we have done. There is only 1 IVA and only 1 set of fees. I have read our IVA document. All our debts be they single or joint are listed together as is our income and expenditure. We were advised to do this by CCCS.