{"id":10085,"date":"2011-12-05T16:56:12","date_gmt":"2011-12-05T16:56:12","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10085"},"modified":"2019-07-01T17:03:39","modified_gmt":"2019-07-01T16:03:39","slug":"iva-for-homeowners","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-for-homeowners\/","title":{"rendered":"IVA for Homeowners"},"content":{"rendered":"\n

If you have personal unsecured debt that you are considering \nusing an IVA for, you should bear in mind that any assets that you have \nmay be incorporated into the IVA.<\/p>\n\n\n\n\n\n\n\n

An Individual Voluntary Arrangement is a way of reaching a compromise\n between you and your creditors in circumstances where you cannot meet \nthe terms of your existing agreements. Naturally, your creditors will \nwant to recoup as much of your borrowing as possible. An IVA ensures \nthat this will only be done within a framework that is realistically \nmanageable to you.<\/p>\n\n\n\n

Assets<\/h2>\n\n\n\n

An IVA is a way to settle your debts through a renegotiated deal. Any\n assets that you have, such as a home or other property, may be taken \ninto the IVA deal in some form. For example, the IVA may require you to \nrelease equity from your home and pay a portion of this towards the \ndebt.<\/p>\n\n\n\n

\"IVA<\/figure>\n\n\n\n

Your Insolvency Practitioner will take into account the details of \nyour finances including income, assets, outgoings and debts. They will \nbe able to advise you as to what your options are, one of which is \nsometimes an IVA. If you own property you may find that you have more \nchoices, as you can, for example, release equity and use these funds to \nhelp settle your other debts.<\/p>\n\n\n\n

Overview<\/h2>\n\n\n\n

When you put forward an IVA proposal you will be required to include \ndetails of your assets and liabilities, so that the creditors can take \nthese into account. The creditors will consider any equity that you \nhave, i.e. the difference between your home\u2019s value and the amount that \nyou still owe towards the mortgage on it. Creditors are entitled to \nregard up to three quarters of the equity on your home as potentially \npayable towards your debt to them.<\/p>\n\n\n\n

Your home<\/h2>\n\n\n\n

For this purpose, you may need to have a valuation carried out on \nyour home as part of the IVA proposal process. You will also need to \nenclose details of your mortgage, such as a recent mortgage statement \nfrom your lender.<\/p>\n\n\n\n

Equity<\/h2>\n\n\n\n

Depending on the stage you are at with your mortgage payments, the \ncreditors may request that your property is valued at a later stage in \nthe IVA, when you will presumably have paid a greater portion of the \nmortgage off.<\/p>\n\n\n\n

There are different choices when it comes to releasing equity from \nyour property, and you should explore your options fully if this is \nindeed a necessary part of your IVA. Re-mortgaging is one option that \nmany people use but you should ensure you understand fully the \nimplications of such actions, as they essentially amount to further \nborrowing on your home.<\/p>\n\n\n\n

If you have unmanageable debts and are a homeowner, you are likely to\n find that you have a few more options to choose from. However, it\u2019s \nalways advisable to think carefully about these decisions, and to get \nthe best advice you possibly can before going ahead with anything. \nFinance options that involve further borrowing should only be entered \ninto with due thought, and should promise to leave your finances in \nbetter shape in both the short and long term.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you have personal unsecured debt that you are considering using an IVA for, you should bear in mind that any assets that you have may be incorporated into the IVA.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-10085","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=10085"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10085\/revisions"}],"predecessor-version":[{"id":10096,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10085\/revisions\/10096"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}