IVA & Selling house

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
2 replies 612 views
symesdsymesd Forumite
121 Posts
edited 30 November -1 at 1:00AM in Bankruptcy & Living With It

We are 21 months into our IVA and hoping to sell our house soon. We will be going into rented accommodation if we are able to sell as no chance of a mortgage.

We are hoping to have some equity to pay off our 2nd mortgage and then have enough money left to offer Full & Final Settlement to pay off our IVA and still have enough money to pay our deposit for renting and give us some money to buy essentials which we have not been able to afford whilst on the IVA such as new beds, wardrobes, fridge/freezer etc.

What are the chances - we have about £12500 left to pay over the remaining 39 months and wondering what would be an acceptable offer .... we think we will have about £41000 equity to pay off £15k 2nd Mortgage and the rest for IVA (£12500) and resettlement/rental fees.

I have been off work for last 2 months with stress & heart problems and do not think I can continue to work full time so hoping to reduce my hours at work if able to sell house.

Any suggestions

Debt £34,800 - Dec 2012
Debt £12,500 (Dec 2015)
Current Debt £6,435 (Nov 2017)


  • foxy-stoatfoxy-stoat Forumite
    6.9K Posts
    Sixth Anniversary 1,000 Posts Name Dropper
    I would speak to your IP before you do anything, seems silly to chuck away your equity like that.

    You get get free fridges and freezers from freecycle or cheap ones from ebay or preloved.

    PS, this is a Bankrupty board, you should post on the IVA section.
  • National_DebtlineNational_Debtline Organisation Representatives - Private Messages may not be monitored
    8K Posts
    Hi symesd

    It sounds to me as though you may need to seek a formal modification of your IVA so that this plan can be carried out safely. If you were to simply sell without any prior discussion with your insolvency practitioner, they might be able to claim a much greater share of the proceeds than you are hoping to give them.

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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