How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jamie-Law Your Own Question
Jamie-Law
Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 4706
Experience:  Solicitor
96104960
Type Your Law Question Here...
Jamie-Law is online now

Regarding my previous question, within your answer is my son

Resolved Question:

Regarding my previous question, within your answer is my son able to keep his house which he owns and lived in or will he be forced to sell it pay his creditors
Submitted: 14 days ago.
Category: Law
Expert:  Jamie-Law replied 13 days ago.

Hello and thanks for asking for me.

If it has equity he will be forced to sell.

If it does not have equity, or very little, he wont be forced to sell.
Can I clarify anything for you about this today please?

Customer: replied 13 days ago.
My son has ben given this advice,
If I give the keys back to the bank they will take control of the property. They will sell at best price (auction)The shortfall will then become an unsecured debt. All debt surrounding the flat will become unsecured debt.The final step is to contact Stepchange and put an IVA in place for the amount of the shortfall and all my other unsecured debt. They will conceive a plan based on my income and expenditure. eg. 10 creditors £60000 my surplus after budget is £100 per month. 10 creditors will receive £10 per month for 5 years. At the end of the 5 years regardless of how much I have paid off the debt is written off.The bank/insurance company is not able to force the sale of my own property but they are able apply to the court for a note of caution on the Land Registry when I do sell my own property 51 Northleigh. If I sell this will be flagged up to the solicitor dealing with the sale.If the IVA is in place the bank is not able to do anything, not even apply to the court for notice on the sale of my property.Can you please comment on this so we can decide what is the best thing to do.
Thank you
ALan Chell
Expert:  Jamie-Law replied 13 days ago.

Sort of. No-one benefits from taking your home from you. Making you homeless disrupts your family, puts strain on your health and relationships, and puts pressure on your local council to re-home you. It is in no-one’s interest to see you lose your home.

That does not mean however that your home cannot be used to help you pay creditors. If you are a homeowner, you may be asked to release a proportion of any equity within it through re-mortgaging within the five years of your IVA. If you are in negative equity, your IP may wait until the end of the IVA to assess its value to give it a chance to increase.

Can I clarify anything for you about this today please?

Customer: replied 13 days ago.
Thank you, ***** ***** clarity please
How much is "little" equity in his property, (I believe it is currently about £20,000) Overall indebtedness about £90,000 (not including his own home)
Do I understand that the creditors can demand this equity in his home at any time during the 5 years of an IVA and can they claim after this period?
Expert:  Jamie-Law replied 13 days ago.

correct. Does that clairfy?

Customer: replied 13 days ago.
Just one point, can the creditors pursue the claim after 5 years of the IVA
Expert:  Jamie-Law replied 13 days ago.

No they cant. Its then dealt with in the IVA

Does that clarify?

Jamie-Law and other Law Specialists are ready to help you
Customer: replied 13 days ago.
Thank you