Undertaking an IVA might be overwhelming for finance novices especially when exiting assets are under consideration. An asset is something of significant value that you own, for example a house, car or item of jewelry, or savings or shares. Assets aren’t necessarily included in your IVA. In most cases, you’ll be able to keep items like your phone, jewelry, car and home. But other assets have a lot of restrictions upon them. The overflow of information might confuse you if you are new in the finance world. Have no fear, the complete breakdown of where you stand after an IVA vis-à-vis your assets is given below.
IVA and Your Home
Under an IVA, the situation is unlikely where you’ll have to sell your home. However, there are conditions where you may have to re-mortgage before IVA end. This is done to release equity and depends on the amount of equity in your home. This amount is paid into your IVA. There is a silver lining as you won’t be expected to increase your mortgage to more than 85% of the value of your property. If you’re a first-time buyer, it’ll be harder to get a mortgage while you’re on an IVA.
IVA and Your Car
You’ll usually be able to keep your car depending on the value. Your insolvency practitioner will value the car to check how much it’s worth. If your car is worth quite a lot, your creditors might ask you to sell it. However, you’ll usually be allowed to keep some money to buy a replacement. If you own two or more cars, you will be asked to justify this. If you have a car on hire, you can keep making payments towards it so you can keep it.
Remember, each IVA is different as it’s tailored to suit your situation. The solutions will also be personalized. Now that you have a clearer picture, have a chat with one of our Insolvency Practitioners to alleviate all your worries.