Does it make a difference if I am a homeowner with an IVA?
You retain full control of your property with an IVA
We receive a lot of calls and emails from the public asking; "Does it make a difference if I am a homeowner with an IVA?".
Please note that you can apply for an IVA whether you are a tenant, a homeowner or even if you are still living with your parents.
Please note that if you are a homeowner and there is equity in the property then you may need to release up to 75% of the equity over the IVA period.
In some IVA proposals your monthly IVA payment may be reduced if you are a homeowner because you can release some equity as part of the deal.
The prospect of releasing equity from your home is not a pleasant prospect but at least with an IVA you will be guaranteed to be debt free (subject to terms and conditions) after a set period. Unlike bankruptcy you also retain full control of your property.
If you are living in rented accommodation, there is no risk to your home in an IVA. You should however, check your tenancy agreement to ensure that the Landlord does not have a clause about tenants entering into an IVA.
If you live in mortgaged property, your creditors will want details of any equity that you have in the house. Equity is the difference between the value of your house and the amount of the loans secured against it.
As part of the IVA process, the Insolvency Practitioner will ask you to have your house valued. Your creditors are entitled to up to 75% of your share of the equity. You may be asked to release this money for the creditors benefit within the 5 years. This could be via a re-mortgage.
If there is little or no equity in the house at the start of the IVA, then you could still be asked to have the house valued in the 4th year of the arrangement and again up to 75% of your share of equity would be expected to be released for the benefit of the creditors.
If you would to know if it make a difference if you am a homeowner with an IVA or just discuss an IVA in general please complete the following form or telephone freephone 0800 074 6918.
IVA Knowledge Base Menu
- IVA Knowledge Base Home Page |
- Why should I choose an IVA? |
- What will an IVA cost? |
- Are there any additional fees after my monthly contributions to my IVA? |
- Is an IVA the best option? |
- Will I lose my home, house or property in an IVA? |
- How will an IVA affect the equity in my house, home or property? |
- Can I still obtain a mortgage with an IVA? |
- What happens if some of my creditors disagree with the IVA? |
- Is the IVA registered on your credit file? |
- Are there any disadvantages to an IVA? |
- What happens if I come into money whist I am in an IVA? |
- Can I include family members that I owe money to in an IVA? |
- Can I still have a bank account with an IVA? |
- How do I settle my IVA early? |
- Will an IVA affect the people I live with? |
- Can self employed people do an IVA? |
- Can I get an IVA while living abroad? |
- Who can enter an IVA? |
- Will I lose my house with an IVA? |
- Can I stay in business with an IVA? |
- I am a professional person will it affect my position with an IVA? |
- Will an IVA become public knowledge? |
- How long does an IVA last? |
- Which creditors can be included in an IVA? |
- Can I enter into an IVA if I have already received a Statutory Demand? |
- Can I obtain an IVA if a Bankruptcy Order has been made against me? |
- What happens if I don't keep up the payments on my IVA? |
- What happens once I finish paying my IVA? |
- Can I enter an IVA if I already have CCJs against me? |
- Does it make a difference if I am a homeowner with an IVA? |
- Do I have to tell my partner if I do an IVA? |
- Does an IVA cover all of my debts? |
- What is the difference between a secured and unsecured debt? |
- Do creditors have to accept an IVA? |
- Can an individual creditor refuse to accept an IVA? |
- Will the IVA prevent my creditors taking further recovery action? |
- What if my circumstances change whilst in an IVA? |
- Can I cancel the IVA once it is set up? |
- What happens if I just stop paying into the IVA? |
- How long does it take to set up an IVA? |
- Will interest and other charges be frozen while the IVA is being set up? |
- Can a creditor take further recovery action before the IVA is approved? |
- What happens if the IVA is not approved? |
- What Does IVA Stand For? |
- How do I work out how much I can afford to pay per month in to an IVA? |
- I am considering an IVA. How does it work? |
- Do I have to attend IVA meetings, or can this all be done by post? |
- What do creditors expect from an IVA? |
- How likely is it that an IVA will be accepted? |
- Are all creditors forced to accept the IVA majority decision? |
- What happens if the creditors don't like the IVA deal? |
- What do I do if the IVA is rejected? |
- IVA - Individual Voluntary Arrangement |
- I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Can I do an IVA at this late stage?
- Will an IVA really write off all of my debts?
- Will I live in poverty for the duration of the IVA? |
- What if I win the lottery whilst in an IVA? |
- What if I get a pay rise whilst in an IVA?
- Will my IVA appear in the newspapers? |
- Will people know about my IVA? |
- Will I ever be able to get credit again after an IVA? |
- Is an IVA more expensive than just going bankrupt?
- What will happen to my house in an IVA? |
- What will happen to my furniture in an IVA? |
- What will happen to my car in an IVA? |
- I run a business. What will happen to my business in an IVA?
- Will my partner have to contribute to my IVA?
- My partner and I have joint debts. Can we lump them all together in the same IVA?
- What happens if I'm unable to keep up with the IVA payments?
- What happens at the end of the IVA arrangement?
- Are there any upfront fees with an IVA? |
- Why should I consider an IVA over bankruptcy? |
- What are the advantages of an IVA over a debt management plan? |
- How will an IVA Improve my life? |
- Is there immediate relief if I do an IVA? |
- How much debt do I need to do an IVA? |
- What types of debt can an IVA deal with? |
- Can utility bills be included in an IVA? |
- Will an IVA stop collection calls? |
- Will an IVA freeze my interest rates? |
- Will I have to sell my house if I do an IVA? |
- Will an IVA stop home repossession? |
- How will An IVA affect my home equity? |
- Can I keep my car if I do an IVA? |
- What assets might an IVA affect? |
- Will an IVA be reflected on my credit file? |
- Do I need to include all my creditors in an IVA? |
- Can I apply for credit while I'm in an IVA? |
- Will I need to change bank accounts in an IVA? |
- What will my monthly payment be on an IVA? |
- What if I am unable to keep up with my payments in an IVA? |
- Can my IVA payments go up? |
- Under what circumstances can I reduce my IVA payment? |
- Who will know if I do an IVA? |
- Will my landlord need to know if I do an IVA? |
- I've decided to do an IVA, should i stop paying my creditors now? |
- Will an IVA affect my employment or my ability to get a job? |
- I'm in an IVA and I've lost my job, what can I do? |
- What situations would prevent me from doing an IVA? |
- I've been told I can't do an IVA, what should I do? |
- Can I exit out of my IVA before five years? |
- Under what circumstances can an IVA proposal be rejected? |
- What percentage of IVA's are blocked by creditors? |
- What happens if my IVA fails? |
- What if I can't remortgage as per my IVA proposal? |
- My husband and I are considering an IVA as a solution to our £25,000 debt |
- What happens if I change from being employed to self employed during my IVA? |
- If my partner enters an IVA will I have to sell my car because it is registered in my name? |
- What happens if my income rises during an IVA, would the creditors want all of the increase? |
- What is the minimum level of debt for an IVA? Is it 12000 or 15000 pounds? |
- Can I keep my home if my IVA is accepted? |
- Will I have enough money to live if I go for an IVA? |
- Information on the IVA procedure in the UK |
- IVA Questions |
- IVA Specialists |
- IVA Company |
- IVA Info |
- IVA Companies - What makes a good IVA Company? |
- IVA Debt Solution |
- Can I include HM Inland Revenue and Customs (TAX) debt in an IVA? |
- IVA Info |
- IVA-site
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]