Advise needed!

[hayleyj]

hi... I am currently living with my partner and my 2 young children. I've always been very good with managing my money but unfortunately he hasn't. He has numerous debts, half of which I do not actually know about as he tells me nothing. The worrying thing is we now have a joint mortgage( which at the time of setting up he assured me that he was financially sound). There is equity in our home, however a lot of this was obtained through the sale of the last house which was my own house. On obtaining the new mortgage for our present house, my solicitor advised me to sign a declaration of trust stating that whatever happens, if the house is sold I would be entitled to my equity approx £50,000. He has now revealed to me that his total debt amounts to £27,000 and that he has sought advise from a financial advisor who is suggesting an IVA as a possibility for him. On reading some info on the net re IVA's my concern is re the equity. Some state that creditors expect up to 70 percent of the equity when you are in a position to remortgage. So does this now mean that A. My £50,000 equity could be at risk and B. The extra equity from our new house would be taken, or do the creditors take into account that this is a joint mortgage and I had no idea of the financial mess my partner has got himself into? Our relationship is on the rocks anyway, and I am unsure of what to do.

[Adam Davies]

Hi
Your 50k should be safe along with 50 percent of the remaining equity but do take legal advice and check this out.Your partners IVA will only take his part of the equity into the arrangement.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp