What will happen to my house in an IVA?

Unlike with Bankruptcy, where ownership of your home is passed to the Official Receiver or Trustee in Bankruptcy to release any beneficial interest (surplus funds) by whatever means necessary (including by selling your home), one of the main advantages of an IVA is that your house is protected.

However, you may be required to release equity (if available) in the final few months of your IVA.

Your Insolvency Practitioner will register a restriction over the property (lodged at the land registry) once your IVA is approved, the purpose of which is to protect the equity by letting other interested parties (people looking to secure a loan against the property or people wanting to buy your home) that the property is subject to an IVA.

See what are the implications of an IVA remortgage for more information.

You can read more about IVAs and whether they are suitable for your situation in our IVA section.

Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on any aspect of debt, including IVAs. If you need to talk to someone about debt, please call the charity's helpline on 0800 043 40 50 to speak to an adviser.