Secured Loan

[maha]

My husband and I are Tenants in Common. He took out a secured loan on our property when he brought his business, the loan is in his name only. When calculating the beneficial interest we have included the full loan in his half of the equity as it is not in my name. His trustee has told him that he must take half the loan from my half of the equity which of course increases the beneficial interest in my husbands half. Is this correct or has the trustee made a mistake in his calculations?

[MelanieGiles]

I don't agree with the Trustee here - if your husband can prove that the loan was taken out for his business, and that you have not benefitted in any way, then it is rightfully allocated against his share of the equity.

You would be advisable to take proper advice on this matter from a solicitor with experience of insolvency matters.

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

To have me propose an IVA for you, please visit:
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[pbeck]

The important point as Melanie says is "benefitted in any way". The Trustee will probably argue that as a result of your husband buying the business, this provided an income from which you both benefitted, as, had he not taken the loan, he would have been unable to draw any moeny from the business for living expenses, and you would have had to support him from your own earnings

There will probably have to be some compromise as to the exact allocation of the loan, it will be a question of fact as to the extent to which you would have benefitted from him running his business.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[maha]

Thanks for advise on this. The fact is that I have accummulated my own debt as my husband was not always in a position to pay himself so I do not really feel that I have "benefited" too much!