If my husband has no income he cannot and should not to be in an IVA ?

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moneyistherootofallevil

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Post by moneyistherootofallevil » Wed Aug 17, 2016 12:47 am
I started a DMP in 2011. In June 2013 I had a baby and in Oct 2014 my husband had to give up work to become a full time dad. Consequently we both started IVAs. (My DMP became an IVA and he started an IVA.)
My husband now has no income at all. We have my income and child benefit for 2 children aged 3 years and 8 months. My husband is a full time dad. I work full time as a deputy head. (I only took 3 months maternity for both children so I could get back to work to pay both IVAs.)
My house is in my name only. I have always paid the mortgage. It is nothing to do with my husband. My husband has never made any contribution to the mortgage or bills such as council tax and gas and electric. His income (when he had one) just contributed to food and going out etc.
We have no savings. We have no means of any other income. He has no pension.

We are struggling in paying our IVAs because I am paying for both of them. The paperwork (through Payplan) has separate IVAs for myself and my husband but his income is listed as 'Partner's Earnings.)

Is all of this right?! I am starting to think that if he has no income he cannot and should not be asked to pay an IVA at all and should declare himself bankrupt, freeing me to pay my own IVA and provide for my family of 4.

If he went bankrupt, would this affect my house?

I have just finished a 6 month payment break due to having my second child and am trying to figure out my future. I have no problem contributing to my debts but am feeling I may have been wrongly advised to be paying my husband's debts (which are all credit cards and bank loans.)

I really look forward to any help,

Thank you so much.
Lucy
 
 

kallis3

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Post by kallis3 » Wed Aug 17, 2016 8:25 am
Hi,

Sorry to hear that you are struggling and you do need to speak to _Payplan.

Your husband can let his IVA fail by not paying it for three months and he can go bankrupt but not sure how that would affect the house.

If Payplan could reduce his payments, would that make things any easier?
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relieved33

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Post by relieved33 » Wed Aug 17, 2016 8:36 am
Sorry to hear you're struggling.

I really think you need specialist advice. Creditors could argue that your husband hasn't contributed financially to the house as you decided to have and then expand your family so he does have a share as often happens the other way around.

If you are paying both and then stop paying his iva, payplan will say your disposable income has increased so take the extra money anyway. Yes, that would increase the return to your creditors but I cannot see that you would be financially better off - that's why I sm suggesting you speak to a professional, perhaps Lisa as she is always very helpful.

If there is equity in your home, you need to be extremely careful!
 
 

lifenoteasy

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Post by lifenoteasy » Wed Aug 17, 2016 8:54 am
Unfortunately pay plan are a bit of a loose cannon and plays fast and loose with household income.
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.
 
 

kallis3

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Post by kallis3 » Wed Aug 17, 2016 8:57 am
Do Payplan know that you are paying his IVA? If it comes out of a joint account it will just be paid that way.

We had two separate IVA's with Payplan which all came out of the same pot and was never queried.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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size5

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Post by size5 » Wed Aug 17, 2016 10:28 am
Insolvency law and divorce law are different when it comes to beneficial interest in property. Specialist advice can be costly, and it is unneccesary in my opinion, as the only person who can give a definitive answer to this is the Official Receiver appointed. My opinion is, given what you have said, that he does NOT have a beneficial interest in the property. If you divorce tomorrow though, it is possible that he could argue that he does.

How much debt does he have? If it is less than £20,000 then he could potentially look at a DRO. Although the issue is still the same one, I have recently had a number of cases with the same question and the same scenario you have. In each one, and bearing in mind that an Approved Intermediary has to be satisfied that there is no beneficial interest, the DRO's were accepted.

Hope that helps.

Regards.
Last edited by size5 on Wed Aug 17, 2016 10:29 am, edited 1 time in total.
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Foggy

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Post by Foggy » Wed Aug 17, 2016 10:28 am
There is a strong possibility that the IVA's are interlocking and that the failure of one will lead to the failure of the other -- check the proposals.

Regarding equity, it will be argued that your husband, by caring for the family, is contributing to your ability to earn and pay the mortgage. In this manner he could have acquired an equitable interest in the property.

In all, tread carefully.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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