In this current economic climate, every home owner is concerned about the equity value in their home.
However, when you are in an IVA, equity levels take on a deeper significance. After all, potential falls in releasable equity could have implications on how your IVA is concluded.
Generally speaking, home owners are required to give their creditors an undertaking regarding their equity at the creditors meeting. This undertaking spells out very clearly how any releasable equity will be calculated and when it will be expected to be released, and it is laid out in detail in the IVA proposal.
To help people who have limited or no understanding at all of this part of the IVA process My IVA Adviser have created a FREE guide entitled:
“How will an IVA affect the equity in my house?”
If the equity level falls whilst the IVA is active, the bottom line is the creditors will suffer a shortfall on the amount of money the debtor is able to return through the IVA. The IVA will complete as normal, but there will be a larger write off at the end of the IVA.
There is a potential downside to IVA equity levels falling though, and this is when the reducing equity stops a debtor from being able to offer their creditors an “Early end to an IVA”
Calll 0800 088 7503 NOW and speak to one of our IVA advisers or leave your details at our quick contact page so that we can call you back.
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