What happens to my property in an IVA?

Most IVA proposals are designed to protect people from losing their home. It is very unlikely that you will need to sell your property as part of an IVA. If you own a property, it is likely that your creditors will insist on an ‘equity clause’ being added in to your IVA proposal. If applicable to you, the equity clause will simply state that you are willing to try and release equity from your property in the final year of your IVA (usually the 5th year). If you are unable to release equity in the 5th year, your IVA may be extended for a further 12-months.

If you have a very large amount of equity in a property, you may be asked to release this at an earlier stage. Ultimately, the terms of the IVA you wish to propose are up to you. You may decide to ask the creditors to exclude the equity in a property for certain reasons and they may agree to do this.