Selling house whilst on an iva

AHELENM71

Hi

I am half way through an IVA with Payplan and at the end of my tether struggling on to make ends meet.

After being made redundant 5 years ago and then setting up my own business I managed to rake up debts of about £35K.

Myself and my husband are looking into selling our house to use the equity to help out paying bills and paying for our 3 kids etc without stress. I really want to be debt free so I thought I could pay off my IVA and have some left over. That dream came to an abrupt end as with interest and charges my repayment balance is now over £50K!!!

Our equity is £80K so my half share would be completely wipes out by the IVA and I would still owe them??

If we don't sell and I finished the 5yrs and managed to remortgage as Payplan request we do to take 85% of equity, would I pay more than what I owe now with house prices rising?

Does anyone else feel the Payplan contract was extremely hard to understand, were sucked in by the marketing using words like 'Free' and 'percentage of debt written off'.

If you are a homeowner I would not advise an IVA, they have you by the short and curlies. Nothing is free, interest and charges apply if selling withing the 5 years. New jobs may require you to move and sell up, feels like you would not be better off at all.

alastairq

If you are a homeowner I would not advise an IVA, they have you by the short and curlies. Nothing is free, interest and charges apply if selling withing the 5 years. New jobs may require you to move and sell up, feels like you would not be better off at all.

Whilst I cannot proffer advice towards your situation, I wholeheartedly agree with your views on IVA,s...both in this particular instance, and IVAs in general.

The alternative [Bankruptcy] isn't such a fearful place to be...certainly in comparison.

It does not automatically lead to a loss of property, either.

Only surplus income, [after reasonable...and probably, more generous, living expenses are deducted]....is taken in an IPA....which is an agreement, not an imposition....and is variable to suit the Bankrupts' changing circumstances.

And this lasts for but 3 years.

IVAs are appropriate is a very small percentage of cases....but are promoted as they are a source of income for those who administer them.

A change in circumstances means appealing to the IVA administrator, and the creditors, to change what is paid.

And they all seek more, not less.

As far as I can tell, with limited IVA experience, the IVA is really the spawn-of-the-devil......far better to have the protection , and be controlled by, the Courts. [as in Bankruptcy]

longtermplanner

AHELENM71 wrote: »

Our equity is £80K so my half share would be completely wipes out by the IVA and I would still owe them??

I think you shoudl discuss this with Payplan. It may be that a variation on your IVA could be arrrenged so your half of the equity would be taken in full and final settlement of the IVA.

If we don't sell and I finished the 5yrs and managed to remortgage as Payplan request we do to take 85% of equity, would I pay more than what I owe now with house prices rising?

Possibly. But of course your partners equity would have gone up in value so you may overall be better off than exiting the house market now anjd renting (if that is what you are thinking of doing.)

Does anyone else feel the Payplan contract was extremely hard to understand, were sucked in by the marketing using words like 'Free' and 'percentage of debt written off'.

IVAs are complicated documents, I doubt Payplan's was "worse" than others. Whether there was a better alternative for you at that point is very hard to tell.