My wife signed up to an IVA without me knowing

[c_h]

My wife signed up to an IVA without me knowing a year ago, i found out and didnt really understand the extent of how serious it was and signed onto it as joint to pay it off quicker and half the payments. We owned our own house and a condition was that we could not sell.

However, we have split up and are in the process of divorce. the house is almost at exchange. the iva company have stated that the creditors will look at the equity in the house (approx 11k) and take that as full and final settlement. However they might not accept it and make us take out seperate IVA's. the only thing is, none of it is my debt? Its all hers and her spending on herself and i didnt even know she was in that debt.

Do you think this is likely they will make me take on half her debt when the new iva's are drawn up, or that they will see it was all hers and she have to do it alone as she had originally?

[MelanieGiles]

Sorry, c_h, I don't quite understand. Do you mean that you and your wife entered into voluntary arrangements at the same time - if so I don't understand how your payments would have made it be paid off quicker? Are you paying all of the creditors in full perhaps?

It appears that you already have separate IVAs, they are just mutual and interlocking. Was your property included in the IVA's as an asset - do you have a fourth year revaluation clause?

The bottom line is that if you have no debts, then none of your asset should be taken into consideration, and you no longer have to contribute towards your wife's payments.

Sorry this answer is vague, but can you be more specific about the exact situation you are in. If you have no debts, why are you in an IVA in the first place? You cannot be made to be responsible for your wife's debts - at any time.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[c_h]

sorry, i got that wrong, i checked last night and it wasnt to make it quicker. It was to help with the payments. i thought and she told me it would reduce the term. but no its a 60 month iva. She went into it in March 05 and i signed onto it a few months later. It is not a separate IVA as i have no debt! ive never even had a credit card. It was all hers - except a joint loan, which as far as i knew, we were still paying but she included that in the IVA, this of course has my name jointly on it but all the other debt is hers. Its quite hard also for me to say about the in's and out's as she signed into it without me knowing and i dont really understand the details of IVA's. But i do know, we were not allowed to sell our house as one of the clauses. however, it is not a perfect world and we are not staying married due to an IVA clause so our house is now at the point of exchange. The IVA company have said they will have to review it to see if 11k will be full and final settlement. However i work out that they will be writing off a further 8k so its unlikely they will do this?? Or will we have to go into separate ones? im confused as if there is only 8k left then how can we go into IVA's? And again, if these details are clearer, will they make me responsible for her debt or at least half??
Ok this is an additional note from earlier....ive just spoken to my solicitor.She said she is waiting for the IP to return her letter asking about the restriction on the house! The buyers' solicitors need it to be lifted before exchange can happen. My ex has just called the IVA people about it and they have told her that they did put a restriction on the property, (although when we both spoke to them before they said they wouldnt and we were OK to go ahead and sell!!!) - now our case has gone to the Insolvency Department and they have told her 'It will take as long as it takes for them to make their decision'! What are your thoughts please??x

[MelanieGiles]

You are only responsible for the joint debt, and you will get your share of the house sale proceeds when that eventually completes. I am still unsure whether you are actually in an IVA or not, but if not, then you should use your half share of the property proceeds to come to some form of arrangement with that creditor.

Make sure your solicitor is fully aware of the situation before she completes and, assuming that you are not in an IVA, make sure that the solicitor does not send your share of the house sale monies to your wife's Supervisor.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[c_h]

Sorry, so are you saying that when the house sells even though im signed onto the IVA with my wife, i can have my share of equity in the house? As we have now been given an exchange date of next friday and ive been told by my ex that the 11k of equity is to pay off (if accepted by the creditors) the iva?

[Storm]

I think Melanie is saying that from the information you have provided it is difficult to say whether you are actually in or part of an IVA or not.

The conveyancers will not exchange on the sale until the restriction is removed at the land registry.

The other point Melanie is making is if you are not in an IVA you will have to settle with the company that you have the joint loan with. The legalities of the joint loan are more complex in that they are joint and several and you don't want to be left with a potential liability.