The issue of home ownership during bankruptcy is a tricky one but many have found that applying for an individual voluntary arrangement doesn’t preclude them from applying for a mortgage.
Experiencing bankruptcy is a traumatic time in anyone's life but it can be avoided by applying for an individual voluntary arrangement. When declaring yourself bankrupt, you will inevitably find that if you own your house, either solely or jointly, your personal ownership (interest) will pass over to the Official Receiver or trustee. Those who apply for an individual voluntary arrangement, however, are able to avoid the onset of bankruptcy but entering a legally binding arrangement to pay back their creditors.
Individual Voluntary Arrangement – Owning A Home Need To Knows
It is a common misconception that those with an individual voluntary arrangement will not be able to apply for a mortgage. Equally, so, people often believe that it will adversely affect their chances of obtaining the mortgage. This needn't be the case, however. Those wanting to apply for a mortgage whilst in an individual voluntary arrangement will need to obtain the permission of their insolvency practitioner (IP).
Individual Voluntary Arrangement – Paying The Mortgage
Those who are in an individual voluntary arrangement and have successfully applied for a mortgage will need to show their IP that the monthly repayments on their mortgage doesn't diminish their capabilities to pay the monthly amount agreed upon for their individual voluntary arrangement.
Individual Voluntary Arrangement – Remortgaging Issues
For people in an individual voluntary arrangement, many are unsure as to whether they will be able to remortgage their home during the arrangement. There are a number of circumstances where remortgaging during an individual voluntary arrangement will be deemed acceptable. For example, those in an individual voluntary arrangement may wish to remortgage in order to reach a full and final payment on their IVA and move on financially free from debt.
Speak To Varden Nuttall About Individual Voluntary Arrangements
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.