iva

[Velvetee]

If someone enters into an IVA, Would this mean they would have to sell additional property (not their home) in order to cover debts owed to creditors, or are properties not taken into consideration?

[themas]

All assets are taken into consideration. It is very likely the creditors would want any property (other than the home) sold, with the proceeds going to them to go towards paying off the debts.

It is also quite common for IVA terms to include one saying the home must be re-mortgaged in year 4 to raise equity - which also goes to the creditors.

[horselady]

That seems harsh. Surely someone is better going bankrupt in the long run?

[themas]

Yes - for many people bankruptcy is a far preferable option to an IVA, which is only really suitable for people who for some reason (e.g. their job) must avoid bankruptcy, or who have a home they would be likely to lose if they go bankrupt.

[horselady]

Oh yes, that's a point, I think police, anyone who works in banking and a few others cannot be bankrupt. What a nightmare situation it must be though. Really feel for some of the people losing jobs at the moment.