I bought my home 2 yrs ago on a 95% (#33500) mortgage, its value remains unchanged. I have unsecured debts of #17000 and one loan secured on the car(#8000). I am a full time degree student, my partner and I use the car as a private-hire vehicle. Basically I cannot meet all the repayments and am considering IVA. Is it possible to sell house to my brother prior to IVA/Bankruptcy so that no charge can be made upon the property?

-- Paul Rayner (paul@rayner22.freeserve.co.uk), May 08, 1999

Answers

Normally you will not lose assets such as a car or your house if you go for an IVA. You will almost certainly lose them if you go bankrupt.

The main problem with an IVA is that they can be expensive - a fee for setting up the IVA and another for the insolvency practitioner to supervise it. Some firms of insolvency practitioners will take a slice of your available monthly income to pay their fees rather than insist that they are paid up front.

Some Citizens Advice Bureaux have a deal with a local firm of insolvency practitioners whereby you can have a free first interview to discuss whether an IVA is suitable for your needs.

Hope this is useful.

Sue

-- Sue Edwards (sue.edwards@nacab.org.uk), May 10, 1999.