help

[bontom]

hi
I was on the forum on friday explaining our worried I was because I am 31.000 in dept I have since contacted deptmatters plc and grant thorton I only have a income of £846 a month my outgonigs are £429. So I would have about Over £400 to pay into an iva. My husband owns our house and the mortgage is in his name only. but these company are saying that because we are married that I have got equity in the house and they could ask for a lump sum after 4 years which I think is unfair because this is my problem and I got into dept and he didn't know anythink about it till recently. does anyone know our much are they talking about. Or my other choice is to go on a dmp which would take 6 1/2 years to pay at £408 amonth. I not quite sure what to do because I feel if I go on the dmp and that it wont effect him. please can someone give me some advice. Thankyou.

[freelili]

I was trying to comminicate this to you on Friday, it would be the same in BR.

Have you spoken to him about this? You may have to release 75 per cent of the equity in year 4. There also may be a possibility that if he could release something now, you could approach your creditors for a full and final settlement. I think that a DMP for this amount would be a long haul for you, you are not legally protected from creditor harrassment or accumalation of interest. I owe the same amount myself and am in temp DMP, I still get threatening letters and I always feel 'uneasy' about the phone or the post, I know I could not cope with this for over 6 years. What does hubby say about this? Does he know how much you owe? If he is in this with you (even though the debts are yours) then an IVA may be the way forward for you. Hopefully one of the experts may be able to help you with this.

Good luck, keep posting, you are not alone

LILY

[MelanieGiles]

Hi - I did answer your post on Friday and had concerns about affordability.

If you are intent on putting an IVA forward, why don't you try it on the basis that you will not touch your husband's equity, and if the creditors demand it then you will withdraw. This is unlikely to cost you anything, you will just need to persuade an IP to take your case on such basis.

My view is that your husband's equity is his asset and you have no call over it, unless you have made direct contributions towards the deposit monies or any property improvements. Trustee's in bankruptcy will rarely pursue such actions unless there are big numbers involved and they manage to persuade creditors to pay for the costs of Court action.

A DMP is unlikely to be completed within 6 1/2 years, as the creditors will continue to charge you interest. Lily's advice to discuss the options with your husband is a good one - perhaps an overall equity release now might get rid of the debts in one swoop, and you could then use your £400 to pay your husband back.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zoe]

Hi Melanie
Hope your ok
Can you tell me I have a joint mortgage with husband
If accepted for IVA would it be a percentage of my half of the equity that would be paid over if creditors insist on this in the proposal?
(the equity is only about £5000 joint!!!)
Zoe
x

[MelanieGiles]

Hi Zoe

I thought you said that the house and mortgage are in your husband's name only? As you have such little equity, I really don't feel that this is a problem for you in an IVA.

If I were acting for you, I would address this by suggesting that you make six additional monthly payments at the end of the IVA to take account of any interest you may have in the property.

So you pay for 5 1/2 years instead of 5, but it sets your mind at rest that noone can touch your husband's property.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zoe]

Sorry Melanie
I think you are confusing me with Bomtom!
No house is in joint names
Thanks for the info though

Zoe
xx

[MelanieGiles]

Sorry about that Zoe - you are correct, but my answer to you stands!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk