IVA's with a Property
IVA?s can still be done if you are a home owner. The IVA will not affect your home as long as you keep up with the payments under the IVA agreement.
As well as monthly contributions, based on your income and expenditure review, you (the debtor) will be required to re- mortgage towards the end of the IVA.
You will be asked to get two valuations of your property to see how much equity is available at that time. If there is some equity available you will be required to pay a percentage of this (75%) into the IVA by way of a re-mortgage, which will be looked at by our in house mortgage department.
If for any reason you are unable to re-mortgage because for example there is no equity then you will be required to pay the IVA for a further 12 months on top of the original term of the IVA.
For example: If the IVA was original done over a 5 year period (60 months) then you would be required to pay for 6 years in total (72 months).
At the end of the term of the IVA the same conditions apply and any remaining debt will be written off and cleared leaving you debt free.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.