IVA and Mortgage help

simpywimpy

My partner has an IVA with I believe, two years left to run. He also has a mortgage which he is up to date on but on a house which has dropped into negative equity and due to a decline in the area, is unlikely to improve, in fact, sales are currently 10-15k less than he owes at the minute.

My question is, what is the best way forward? He desperately wants to move even if that means renting somewhere smaller, but needs to avoid bankruptcy. If the house was repossessed, would the debt by added to an IVA or is that not possible?

Im just trying to look at options for him.

Thanks

Foxy-Stoat_3

Does he HAVE to move or does he WANT to move???

I very much doubt the negative equity can be added to an IVA. I would be talking to the IP though and get it from them directly for a definitive answer.

Check the terms of the contract too, it may be that the IP is expecting your partner to re-mortgage in year 5 or extend the term by another year if this isnt possible so if he has to sell the BR will be the only outcome.

UpToMyNeckInIt

Bottom line,

Your partner needs to discuss this with his case handler at the IVA company (the property will have a RX1 restriction on it almost certainly).

If you would like a second (expert) opinion on this issue. there is another IVA forum better able to answer this query.

If you send me a PM, I will give you the details (MSE will not allow me to post details here).

Good luck.