It is possible to move abroad during an IVA. However unless you are able to maintain the ongoing payments the Arrangement could fail.
- Can you move abroad during an IVA?
- What if you will not be able to afford your payments?
- Can you sell your house before moving?
- Could you let your IVA fail before moving?
Can you Move Abroad during an IVA?
In principle there is nothing to stop you moving abroad during an IVA. It is possible to carry on with the agreement from a different country.
Having said that to keep the Arrangement going you will need to be able to maintain the monthly payments. As such you must consider the likely impact of the move on your future income and living expenses.
It is best to try and do this before you go. If you are expecting to earn more remember that the cost of living could also be higher. You should reflect this in your projected expenses budget.
If you are planning to move abroad you should speak to your IVA company about it in plenty of time. They can then discuss the implications with you.
What if you will not be able to afford your remaining IVA Payments?
If you are concerned that you will not be able to maintain your payments after you move you should discuss this with your IVA Company. It may be possible to keep the Arrangement going by reducing them.
One of the issues with moving abroad is that you never really know what to expect until you arrive. If after you move you find your payments are too high speak to your IVA company to see if they can be reduced.
Where you believe you will not be able to continue paying after you move an alternative option might be to settle the Arrangement early. This can be done if you are able to make a cash lump sum available.
The one off costs of moving abroad may mean you canot maintain your IVA payments in the short term. If so speak to your Insolvency Pracitioner about taking a payment break.
Can you sell your House before Moving Abroad during an IVA?
If you are a home owner you may be considering selling your property before you move abroad. However given you are in an IVA there are some implications you need to be aware of.
If you sell your house during the agreement your share of any equity released is treated as a windfall. As such 100% of this would normally have to be paid into the Arrangement.
You only way you can keep any of the money is if you first agree this with your IVA Company. As such if you are planning to sell your home to help fund the cost of your move you must agree it with them in advance.
If there is sufficient equity in your property it might be possible to use the proceeds of the sale to settle your whole IVA early.
Could you let your IVA fail before you Move Abroad?
If you know you will be unable to maintain your monthly payments after you move abroad you may have to consider allowing your IVA to fail. However if this happens you will remain liable for any outstanding debt.
It is not a good idea to leave without dealing with this problem. It is possible that you will not be chased for payment while you are overseas. However if and when you return to the UK the debts will catch up with you again.
Where you are not a home owner or you have little or no equity in your property a sensible course of action may be to go Bankrupt. You would then have no debt to worry about and can have a fresh start in your new country.
If you decide to go bankrupt this must be done before you move if your destination is another EU country.