IVA Companies - Will I Lose My House
When subjected to an IVA you will be expected to propose that in the later part of the process you will release any share of your interest in the equity of the property.
In the final year of the IVA you will need to obtain a market valuation of the property and any further secured charges against the property. Creditors will allow a re-mortgage of up to 85% of the property's value. Then releasing the equity into the IVA, your monthly payments to the IVA will then be reduced by the amount of any increase in payments that the re-mortgage has over the old mortgage.
If you cannot get a re-mortgage offer at this time, but equity in the property has arisen, then creditors may instead agree that the IVA continues for at most one extra year in lieu of release of equity from the property. They are only likely to agree to this though if the amount of equity release being forgone is similar to what one year's extra IVA payments would amount to.
If you have an amount of equity in your property is more than the amount of your unsecured debts at the outset, you cannot do an IVA.
If you live in rented accommodation and your rent is up to date, then the landlord will be unaware of any IVA set up for you and you can continue to remain in the property without any problems.
