We keep the best use of funds under review. At present interest rates are low. We have made a deal that we will forego interest in exchange for no charges on IVA accounts. This may change as the interest rate changes.
An IVA will not normally require you to sell your home. However, your agreement may include the release of equity, which usually occurs towards the end of the IVA.
When your IVA is approved, your Supervisor usually applies for a “restriction” on your property, asking you to sign and return a form that is lodged at the Land Registry. This restriction tells other people, such as potential buyers or banks, that an IVA is in progress – and it also makes your Supervisor aware of any dealings on the property.
If you want to sell the property, or undertake other transactions that affect it, contact us first. The restriction is removed following successful completion of the IVA.
If you are a homeowner and you have equity in the property, creditors will ask for a proportion of this as well as your monthly contributions.
If there is little or no equity in the house at the start of the IVA, you can still be asked to have the house valued in the fourth year of the arrangement. Your share of any equity at this stage would usually be released for the benefit of the creditors via a re-mortgage.
Sometimes an IVA requires the sale of certain assets or the surrender of insurance policies etc. It is your responsibility to do this, and you will normally have three months to sell or release assets. It is best to start the sale process and send us the funds as soon as possible, because failure to hand the proceeds to the Supervisor on time can cause the IVA to fail.
Letters and phone calls from your creditors for the first 90 days of an IVA are normal and require no action. A “Chairman’s Report” outlining the outcome of the meeting of creditors has been sent to all people you owe money to and this confirms that your IVA has been approved.
Sometimes creditors and their collection agencies take time to update their records. Simply advise them that your IVA has been agreed and that they should have received a copy of your Chairman’s Report.