I have entered into an iva 6 months ago, I have recently become involved with someone, he is actually my landlord, and I am still making my normal monthly payments that i have declared, however I have not told my partner that I have an iva. he has recently proposed to me and i'm not sure how this will affect him as this debt was acrued before we got involved and the mortgage that he has is his.
Your partners income will just be taken into account to make sure that you are both contributing to the household finances. It might mean that your payments go up if you have any more disposable income.
It shouldn't affect his mortgage as the house was his before you became involved.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
In my opinion for any sort of relationship to work there must be complete honesty on both sides. My advice is to tell him about your fiances. It won't affect his assets but if you are living together he might have to contribute towards the household expenses.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I do advise telling your fiance of your IVA, then you can start married life with no secrets between you.
I felt so much better once me and hubby had everything out in the open.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
While everyone has an opinion on this it really is up to you what you do with regards to who you tell and who you dont. What you must remember is that you will at times struggle by and having someone else to talk to help a massive amount. You also must ask yourself how you would feel if your partner announced something of similar significance after you get wed!!!
Good luck and congratz!!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Your husband to be cannot be penalised for anythimg that happened before he met you. I agree that you should tell him but I would continue with your current payment of rent/board and not merge your finances. Just because you get married does not give your creditors or your supervisor access to his personal finances.
But Michael once married does not the husband have to contribute something from his income towards the household expenses (which are currently born by hyat)?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
There does need to be a fair sharing of household expenses for two people living as a couple - which can either be done on a 50/50 basis, or more reasonably on the basis of earning ratios.
He is the landlord and already pays the expenses. She is the tenant so I do not see how getting married means that he will end up paying towards her IVA. That seems perverse.
Surely once they are married, they will both be contributing towards the household expenses rather than them being seperate?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It does depend on how they decide to split their finances, and not all couples necessarily pool their resources, but I think that the creditors in the IVA would want to see some form of equitable sharing of effectively combined expenditure,
Dave and I pay pretty much 50/50. I pay for all the food and housekeeping, an amount for 'rent' and 50% of the bills and he pays the his 50% of th bills and the balance of the mortgage.
I was worried that the OR would question why I paid for all the food, but nothing was said, presumably because everything else balanced out.
If Hyat contributes to the running costs of the property pro rata in relation to the earnings of her and her husband, it is possible that she will be paying more than she would be currently paying as a lodger/tenant. This would decrease her DI and put the IVA in jeopardy. However, she could accrue a beneficial interest in the property and creditors would demand an equity release at the end. I really do not see how getting married could end up costing her fiancee a hugely increased mortgagein 4 years. What if they live together and do not get married or live apart and do get married?
I think she should just continue paying her rent or board as normal which seems to be the simplest option.
Hi
I tend to agree with Michael on this one.
When you start talking about equity releases to someone who has nothing to do with the debt it is bound to cause all sorts of problems.
Best to take advice from your own IP on this matter but your relationship should be given priority over your IVA.
After aquired assets, such as a beneficial interest in a property should be excluded from an IVA,in my opinion.Only windfalls and inheritence should be due.
Regards
I cannot forsee anyone being required to equity release based on a flimsy beneficial interest claim when they are halfway through and IVA, but Michael does make sensible practical points which show that there can be several different interpretations of the right way to do things.
