Will I lose my home if I file an IVA?

There are a plethora of people who choose to enter into an IVA as a means to keep their homes. The terms of an IVA normally state that the payments that you make to your creditors are taken off of the equity of your home. Do not be alarmed, payments are made this way to ensure that your home will not be taken from you.

If you are renting your home, then there is no risk at all of losing it. Although, it would behoove you to check with your Landlord to ensure there are no clauses in your lease that state anything about tenants entering into an IVA.

If you own you’re home, and are paying monthly mortgage payments on the dwelling, your creditors are going to want to know details concerning the equity that you have on the property. Equity is determined by the difference between the value of your home and the amount of loans that you have against it. Most people that have lived in their homes over ten years have more than enough equity invested in their homes to borrow against it.

You will be asked by a representative from Just Debts to have your home valued. Creditors will be entitled to up to 75% of the equity on your home. You will then be asked to release these funds over a 5 year time span. Many people re-mortgage their homes as a way to get the equity that they are being asked for.

If there is not enough equity on your home, you may still be asked to have your home valued, and following the 4th year of your IVA arrangement will then be asked to take out 75% of the equity as a means to pay off creditors.

The creditors are not going to take your home from under your feet; there is no need to worry about such an occurrence happening to you.