My friend is also in an IVA she is having marital problems and for the last 8 months has been living apart from her husband.
She has not told her IP and things have carried on as if she was living at home.
Next year she wants to rent somewhere on her own and sort her life out.
What should she do about her IVA?
She owes approx 20K it is all in her name and her husband is not named in the IVA.
She is about 2 and a half years into the agreement. She is considering increasing her mortgage to offer a settlement but in this difficult financial climate she doesn't know what to do.
Her IP is DFD and she has found them unhelpful in the past.
She is extremely worried any advise would be useful.
I think your friend really needs to contact her IP to discuss her changes in circumstances, it is hard I guess if the IP is unhelpful but she must hassle them, you mentioned a mortgage? is there an equity release within the IVA? I assume it is jointly owned with the husband?
It needs sorting as it would be a shame to have it fail now!
Your friend's IVA is being managed by the largest IVA provider in the industry, and she may find it difficult nigh impossible to actually have direct contact with her IP - although there should be an account manager with authority to discuss her case and provide assistance.
She is duty bound to keep her IP informed of all changes to her situation, so it would be wise to get her to advise of the marital break up. Does she feel able to continue making her payments given her change in circumstances?
If she is going to move out of the property, will it be sold? If so, this may provide her with funds to offer a full and final settlement, but the equity in her home may already be pledged to the IVA in any case, so she will probably need to get her IP's permission to sell in any case.
She has been making payments despite her change in circumstances. She did not inform her IP because she was not sure what she was going to do in the future. Now she has made her mind up she wants to get it all sorted.
She has a mortgage and a secured loan so it might not be that easy to release equity. Her husband wants to stay in the house.
My best advice is that she contacts her IP to explain her current circumstances, and to seek advice about options for the future. The IVAs can be separated, but this will depend upon the level of disposable income your friend anticipates she will have once she relocates from the family home.
