In IVA, want to 'start again' but am a mortgage prisoner

[MinnieMouse1976]

So I don't know where to begin, but here goes. We took out a Northern Rock Together mortgage late 2007. Our house is now in £25k negative equity. Due to personal circumstances, we are in the final two years of an IVA. We hate the house, it needs repairs but we don't want to fork out what we don't have when it will never increase our house value. The area has gone seriously down hill these past 14 years. We just want out. My question is, as we are in an IVA, if we let the house get repossessed, would the shortfall we'd owe from the value of the sale versus the mortgage outstanding be included in our IVA? We owe £85k on the mortgage and the last house to sell on our street went for around £60k and that was in better condition than ours. Thank you for reading if you've got this far.

Oh love. No advice here but to say that life is too short… it sounds like even with a refurb, you might not get the sale price upto £85k? I’d start again and go and rent or apply for a housing list?

You'd need to have a variation meeting for the IVA to include the shortfall and that would mean both your existing creditors and the current mortgage company all need to agree to add in the debt. They would also probably ask you to extend the IVA for a longer period so that everyone still receives an acceptable dividend. However, they might not agree and it could then leave that debt outside the IVA or your IVA could fail. In that case you could always consider bankruptcy too You'd need to discuss it with your insolvency practitioner to get the best advice for your particular situation. (I spent 7 years working for an IP but haven't worked in insolvency for a few years now so don't take this as gospel, you really need to speak to your own IP)