Selling Your Home, Question by Question
What is allowed, what happens to the money, and what to plan for.
Can I sell my house during an IVA?
Yes, but with your supervisor's involvement. Being in an IVA does not freeze your home or prevent a sale, but because your equity is relevant to your creditors, you cannot sell without telling your supervisor and agreeing how the proceeds are handled. With that agreement in place, selling is perfectly possible, people do it to move, downsize or change circumstances.
What happens to the money from the sale?
Your share of the equity usually goes into the IVA. When you sell, the proceeds left after paying off your mortgage and the costs of sale, your equity, are normally paid into the arrangement for your creditors, rather than kept. Depending on the amount, this can reduce your remaining term or even bring the IVA to an early, successful close.
Do I need permission to sell?
Yes. You should always speak to your supervisor before putting your home on the market. They need to agree the sale and how the equity will be dealt with, and they can guide you on timing and what counts as a reasonable outcome. Selling without involving them could breach your IVA, so the conversation comes first, every time.
Can I be forced to sell my home?
Not by the IVA. One of the main attractions of an IVA over bankruptcy is that it cannot force you to sell your home. Any sale during an IVA is your choice, made with your supervisor's agreement, not something imposed on you. If keeping your home matters, an IVA is specifically designed to let you do that.
Does selling and downsizing make sense?
Sometimes it can. If you have significant equity and high housing costs, selling and moving somewhere cheaper might free money to deal with your debts and reduce your outgoings. Whether it is a good idea depends entirely on your situation, your equity, your housing needs and your plans. It is a decision to weigh carefully with advice, not to rush into.
Can I buy another home after selling?
While in the IVA, that is hard. Buying again means a new mortgage, and taking on new borrowing during an IVA is heavily restricted and rarely approved by lenders anyway. So selling during an IVA usually means moving to rented housing rather than buying. Buying again normally becomes realistic only after the IVA, as your credit recovers.
What if I'm in negative equity?
Then there is no equity to pay in. If your mortgage is larger than your home is worth, selling would not release anything for your creditors, and may not be practical. In that case there is usually little reason to sell as part of your IVA. Your supervisor can advise, but selling tends to be relevant mainly where there is real equity to consider.
Should I get advice?
Yes, before you do anything. Selling your home during an IVA has real financial and practical consequences, so it is worth talking it through with your supervisor and, ideally, a free independent adviser. They can help you understand what would happen to your equity and whether selling truly serves your interests. It costs nothing to get that clarity first.
