How will an IVA or bankruptcy affect my home?
IVAs and bankruptcy will have different effects on your home, and this will depend on whether you rent or own it.
If you rent your home during an IVA: If you rent your home, an IVA should have no effect and it’s very unlikely you’d need to move.
If your rent your home and go bankrupt: If you go bankrupt you can usually stay in the same property if your rent is up to date.
However, some private landlords include a condition in the tenancy agreement which means you could be asked to leave if you go bankrupt, You could also lose your home if you have rent arrears when you go bankrupt.
If you own your home during an IVA: You won’t be forced to sell your home but you might be asked to remortgage it six months before the end of your IVA. You’ll only have to remortgage if it’s affordable, and if you can’t, you might have to either pay an extra 12 months of payments into the IVA, or raise money from a third party instead.
If you own your home and go bankrupt: If you’ve got equity in your house it’s very likely that the official receiver (who deals with your bankruptcy) will make you sell it. If there isn’t any equity in it, you may be able to keep it.
However the official receiver does have two years and three months to decide what to do with it and this means that if the house if it goes up in value during this time you could be asked to sell it.