Will I lose my home in an IVA?

Unlike bankruptcy, with an IVA you will not be forced to sell your home.

In a 5 year IVA you creditors will ask that independent valuations of your property are obtained during the fourth year in order to ascertain whether or not you can re-mortgage to release some of the equity to pay into the arrangement.

The Supervisor will be required to enter a restriction against your property at the Land Registry in order to protect creditors’ interests during the IVA in the event that you default. This will be removed following a re-mortgage or the satisfactory completion of the IVA.

If you have negative equity, you may be able to exclude the property from the arrangement.

Where an IVA has been approved based on a bankruptcy order being annulled so that you can re-mortgage to pay a lump sum into the IVA; and it transpires that you are unable to raise the requisite funds, you may have to voluntarily agree to sell your property.

An IVA cannot affect the rights of a secured creditor. So it is important that you maintain payments on your mortgage in order to avoid repossession proceedings by a lender.

Getting in touch with an insolvency expert for free debt advice is as easy as picking up the phone. Call the Re10 Debt Advice Helpline on free phone 0800 169 1536