I'm in a joint IVA with my husband. We are now divorcing.
The debt is split 80% in his name and 20% in my name. I'm currently paying it all as I was under the impression that if the IVA is defaulted then they can force the sale of my house essentially making me and my family homeless. I doubt I would find it easy to get a rental property due to the credit history.
My question is 'if I split the IVA and take my share and he defaults on his share can they force me to see my home?'
Any impact on the house will be based on whether you are both on the mortgage and the level of equity.
The other factor is what your divorce agreement looks like.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I agree. If the house is in your sole name there is little his creditors can usually do but if the property is jointly owned it would be at risk. If he defaults he could be made bankrupt and his Trustee would look for his share of any equity.
Thank you Michael and Lifeno.. the house is in joint names.
Would any bankrupt trustees take into consideration minors in the home? if by releasing their equity I have to sell the house would they still be able to enforce it? I think I know the answer but just checking.
To put it bluntly I would expect your other half to do the right thing which is ensure any children are not adversely affected by any decisions he makes linked to the divorce.
You need to look at what equity is in the property and whether a forced sale would meet the needs of trustees.
Your first step though is getting the interlocking Ivas split to reduce the financial burden on you.
Ps - I'm male but can guess by the wording of your post he isn't being practical.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Unfortunately the Trustee has a legal obligation to recover the assets of the bankrupt. If there are children the property is only protected for a year but the Trustee must seek to get the equity within three years.
Hopefully your ex does look to protect your home and avoids bankruptcy at all costs.
Much will also depend upon where you are in the life of the IVA and whether there have been any extra payments by way of overtime of PPI repayments.
You really need to have a frank chat with the IP. As mentioned above the IVA's should first of all be separated, as failure of one could lead to failure of the other. Then new I&E's will need to be carried out to determine future payments and whether the IVA's will, indeed, be viable anyway.
Closure based on payments made to date should be at least looked at as a possibility also, if all other avenues fail.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
