My wife has run up massive debts

[dave_t]

Hi.
My wife has now decided to enter into an IVA to sort out her finances. Could you pls explain your comment above re dealing with the equity situation in year 1 rather than at the end? We have a jointly owbed house. We are currently separated but no divorce has yet been commenced.
Thnks

[MelanieGiles]

She could either re-mortgage the property now to raise equity or sell the property. Under contributions based IVA's for property owners, there is a usual provision to raise equity during the final year. Given your wife's circumstances, I merely suggested that this might be better looked at at an earlier stage.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[johnz]

Hi Dave

As a wife who ran up debt without my husbands knowledge and is dealing with the situation now, please may I offer some advice.

All you need to concentrate on is protecting yourself and your children. Do whatever it is you need to do to ensure a roof over your head and theirs, food on the table, etc.

While you say your separated, after reading your posts it looks as though you are still trying to sort things out for your wife. Please stop. This is her problem. This is for her to deal with. If she won't, then she's the one that's going to end up homeless.

The only important thing for you to think about is you and your children.

My husband has disassociated himeself from my debt. If you do that, then at least you will be protected from the fallout from the debt that is not in joint names with your wife.

Regarding the secured loan and the mortgage, you really should get some legal advice. Like I said, protect yourself and your children.

Good luck Dave.

Johnz

[dave_t]

Hi.
Situation has moved on. Wife stopped contributing anything towards household expenses in order to save money to move out. I am now sinking into debt myself trying to keep everything afloat. My question is, if this isn't resolved soon and I get too far into debt myself, how safe will my house be. THere is very little equity but I do want to hang on to it to provide a place for the kids. My wife is being obstructive and won't agree to sign it over to me. What will happen if i'm facing a situation myself that will force me into an IVA in about 6 months time?

[MelanieGiles]

If you are insolvent - ie you have recognised that you cannot continue to service your debts on time - then you ought to take specialist advice as to your options - and IVA will be just one of them. Your house will be safe under IVA proceedings, but you will be required to raise some money from the equity during the final year. If the equity is less than £5,000 - having sought refinance based upon 85% loan to value - then you will not be required to do this, but of course you will have to fund contributions over a five year period, and this may be difficult to afford without your wife's contribution and the fact that you will be paying child maintenance.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp