I don't know where to go from here

[lindsey73]

My partner and I split up in July last year. He owed me money so said that I could have the house and that he would walk away. We have a joint iva with debtmatters and pay them 486 per month to 2 accounts one for him and one for me. When we took the iva out joint debt was around 70k. I had a higher debt so he pays me still £143 per month towards the iva and has agreed to do so till it is finished.

I don't know where to go from here. I am now paying all the house expenses including a mortgage of £900 but his name is still on the deeds and mortgage as I cannot afford to remortgage the full amount on my salary. My brother is giving me a loan of £300 per month which I will have to pay back once the iva has finished. The iva was supposed to help me get out of debt but i seem to be getting deeper into it. I need to get a solictors letter saying that my partner has no proceeds from the house but can't afford to do that at the moment so working on a trust basis. Both of us have an equity release clause in the 4th year. What options do I have from here.

[Adam Davies]

Hi
You must inform your IP of the situation and you must take legal advice regarding the house and your seperation
Regards

[ianmillington]

Hi Lindsey

The legal effect of an IVA is to put the arrangement assets into a trust in faviour of the arrangement creditors so, strictly speaking, he can't give you his share of the house without breaching his own IVA.

You need to get together your proposal, the chairmans report, and any reports you have had from the Supervisor (say an annual report assuming the IVA has been going for over a year).

Then you can either:
1. Talk to the IP. I know debtmatters are going through a state of change at the minute so it may be that nobody working there has a detailed knowledge of the case at the moment or
2. Arrange to see a local IP who can have a look at the paperwork and who can then let you know how you stand as regards the IVA..



Ian

[lindsey73]

I have phoned my ip and they have basically said as long as it is being paid they don't care. If I have a legal letter stating that my ex has no interest in the house they are happy with this because any equity has gone from half each to me soley. Told me to consider early repayment but this is not an option at the moment. I can ask for the house to be removed from the proposal but will have to offer them more in return which is also not an option. With my ex removed via this letter and the fact that I will not be able to remortgage the full amount can they make me sell to release the equity? Is it best to sit tight and see what happens in year 4 or do something now?

[Adam Davies]

Hi
As long as you make an attempt to remortgage by contacting two or three lenders/brokers then you will have fulfilled your obligation.I have not seen a case where an IP can make you sell your house becuase you are unable to remortgage due to affordability.Some proposals have a clause for the IVA to be extended if you are unable to release equity.
I would still advise you to take legal advice regarding your house and to get something in writing from your IP
Regards

[MelanieGiles]

If you are struggling financially, and only managing with family support, is it better to consider selling the property now and moving into cheaper rented accomodation?

[ianmillington]

I'm concerned that your IP says that so long as you keep paying they don't care. Bear in mind your case is in the process of being sold to an IP firm who might just care.

Here's my take on it:

I believe that you will be in interlocking IVAs. Whilst individual arrangements, they are dependent on each other so if one fails, they both do. Your assets and liabilities have probably been pooled as well so they are inextricably linked. So if your partner stops paying you it may mean that both IVAs fail.

You need to consider whether or not to vary the IVAs to sever the link between the 2 of you. Whether this is in your interest will depend upon the full facts of your cases.

I think the first things to consider are where you both want to be in a couple of years time and whether your arrangements can be varied to take account of it. Actually how important is the house to you and is there any equity in it? It might be better following the advice of Melanie and getting rid of it. If there is significant equity would the creditors consider accepting in full and final settlement? A number of possibilities for you to consider.

Hope this helps

Ian