Need some urgent advice??

[r_l]

Hiya there everyone, i havent been on here for a while, as ive been happily getting on with my IVA with no queries- UNTIL NOW..

I have been in my IVA now for few years.. i am due to complete november 2010. to be it couldnt come sooner.

now my question, my fiance has just brought a house in him name to protect the the both of us so i dont have to pay back any equity in the 4th year. i will contibute the amount i can afford towards the house.

we are due to get married June 2009, i am worried sick now that they can take money from something that he has paid for.

Can someone please clarify i am worried sick about this and i dont want my past mistakes to reflect on him. he has already kindly paying for almost everything that i can afford.

[ianmillington]

Hi

I wouldn't be unduly concerned

You will probably have an obligation to tell the Supervisor of your new situation. If your fiance has bought the house in his own name and (importantly) paid the deposit and is making the mortgage payments then there is no direct claim the Supervisor can make against the property.

However, I am concerned about your use of the term "towards the house" - if you directly contribute to the mortgage then technically you can acquire a financial interest in the property. Again there is no direct claim the Supervisor can in principle make but it might be a technical breach of your IVA, and if you subsequently go bankrupt the Official Receiver might have an interest.

If, however, you are simply making contributions to the household budget by way of notional rent, board etc in lieu of what you were paying before then I can't see the Supervisor having an problem with it so long as all other things are equal i.e you are simply making a contribution towards your costs of living there.

Hope this helps

Ian



Help is at Hand!

[r_l]

Hi

I wouldn't be unduly concerned

You will probably have an obligation to tell the Supervisor of your new situation. If your fiance has bought the house in his own name and (importantly) paid the deposit and is making the mortgage payments then there is no direct claim the Supervisor can make against the property.

However, I am concerned about your use of the term "towards the house" - if you directly contribute to the mortgage then technically you can acquire a financial interest in the property. Again there is no direct claim the Supervisor can in principle make but it might be a technical breach of your IVA, and if you subsequently go bankrupt the Official Receiver might have an interest.

If, however, you are simply making contributions to the household budget by way of notional rent, board etc in lieu of what you were paying before then I can't see the Supervisor having an problem with it so long as all other things are equal i.e you are simply making a contribution towards your costs of living there.

Hope this helps

Ian



Help is at Hand!

Thanks for responding so quickly, my finace has put down the deposit and paid for solicitors bills.

We are due to move in next week, we decided that i will contribute to the bills, ie, food etc or where possible. He is paying the mortage 100% and everything else.

I obviously will inform my IP of my new situation. However i was worried that when we become married next year. although im unsure of the legal stuff, whether then they would have a financial instrest in this. When we are married i will have 16months left to complete.

[james.c]

I think the easiet way to sort this out, is have done that you are a lodger with "friend", he charges rent and you pay a share of the bills, as if you were renting so to speak

no matter how bad money gets, theirs stll alot more important things in life - 48 payments to go

[r_l]

I think the easiet way to sort this out, is have done that you are a lodger with "friend", he charges rent and you pay a share of the bills, as if you were renting so to speak

no matter how bad money gets, theirs stll alot more important things in life - 48 payments to go

but i cant do this when im married- can I??

[ianmillington]

Here is the legal position. The starting point is what the deeds say. If the deeds say sole ownership, then it starts at 100%. If they say joint, then the starting point is 50/50. The lines can then move dependent upon the financial contributions made, For example, even if a property is jointly-owned it can still be effectively owned by 1 party if it can be shown that the other co-owner has done nothing at all to contribute.

In your case, if you have as you have said made no contribution to your fiances acquistion of the house, and it's in his sole name, you currently have no rights at all. To keep it that way you need to structure your payments so that you are, effectively, just paying your own way rather than subsidising his expenses in any way. Importantly, advise the Supervisor of the situation now, and get clearance. So long as you do those things, you should be bomb-proof.

Ian

Help is at Hand!

[Adam Davies]

Hi
You have nothing to worry about.
As long as you pay a fair percentage towards the living expenses your creditors and IP will be happy.They will have no claim to your partners property.
It is only in bankruptcy that it could be argued that you have a beneficial interest.
Just keep your IP in the loop and enjoy your new house.
Many forum members have taken the route that you have and I'm sure Skippy will be along to advise on how she paid her partner in similar circumstances with no problems
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[ianmillington]

Andy and I are pretty much saying the same thing. So long as you have not incurred a additional expenditure which affects your ability to contribute and are not making any contribution to it's acquisition (other than your fair share of living expenses)then so long as you tell the Supervisor (sooner the better) Ithere shouldn't be a problem.

So go for it.

Ian

Help is at Hand!

[MelanieGiles]

Just a point on change of circumstances, you will have a completely different set of bills to pay in the new property than you are paying now. You will need to compile a new income and expenditure account for your Supervisor, and this time your partners income will be notionally taken into account - as it is general practice for you to share shared expenses in the same ratio as your respective earnings.

I would give your IP's office a call to talk this through with them specifically.

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

[Skippy]

Hi, sorry I didn't see this last night. In both my IVA and BR I have (sometimes!) paid my partner £200 'rent' (this is less than a third of the mortgage), a contribution to some of the bills and I pay for all the food and housekeeping. I moved in with my partner in March 2006 and until I went into my IVA I didn't pay anything as I didn't have any money!

I was worried that the OR might say that I had beneficial interest in the property, but nothing was said, presumably because I didn't actually pay anything until April 2007.

That's probably no help to anyone, as I don't quite know why I was allowed to pay 'rent'.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/