IVA Please advise

velvetee

Hi,

Like many others I stupidly got myself heavily in debt, which I will always regret and will never do again. My debt was about £40K and I now have an IVA. I have about another 2 years to go and have paid £8670 so far, not sure how much of that goes to my IVA Practitioner.

I'm now in a situation where my relationship is breaking down. I don't want to move back into my one bedroom flat as it's too small for my Son and I and too far from his school, so the option I have is to sell my property, rent for a while with a view to buying somewhere else once I'm IVA free.

The question is, if I sell then obviously my Creditors will want money. When I come to eventually buy another property I would like enough money to put down a lump sum so I don't have a massive mortgage, but in the meantime would have to rent. I only work part-time, but have 2 other properties in negative equity, but this doesn't really leave me enough cash to not have to dip into the sold property profits.

My outstanding mortgage is about £137,000 and I hope to sell for £265,000. Once fees are paid my net profit should be around £120K. I'm not sure about Capital Gains Tax yet as I lived in the property for a long time and my Accountant doesn't think there will be much to pay. So, the big question is, how much would I have to pay my Creditors, would they accept an offer of say £15000 or would they want the whole amount owing, less what I've already paid into the IVA.

Any advice would be much appreciated. Thanks

Foxy-Stoat_3

Was the equity over £100K 2 years ago or has it recently shot up in value?

You will have to tell the IP where the money is coming from, if its from an asset that you would of had to of re-mortgage in year 4 to release equity anyway then you will probably have to settle your debt in full if your lender allowed it, not sure about the IP fees.

Not sure that taking out an IVA if you have an asset that is worth 3 times the debt was the best thing.

Only your IP can say for sure if your proposed £15K will be enough for a F&F payment.