I am applying for an IVA and all the paperwork has been completed and signed but my property is owned jointly by myself and an ex--partner.
It was planned to sell the property almost immediately and my share of the equity would go into the IVA, however it is more beneficial for myself to stay in the property for the time being, paying the interest only is cheaper than renting.
My ex is happy with this for the time being but we both might want to sell within the next few years.
My IVA states that I will apply for a remortgage after year 4 and my ex has been sent a form to sign saying that they agree that the house will not been sold within the next 5 years. I understood that I could apply for a variation and be able to sell the house.
My ex has phoned my IVA co as obviously she is not prepared to sign this form if this is the case. she has pointed out that selling would most probably realise more money for the IVA but has been told this doesn't matter and has been advised to get legal advice.
She is not happy to pay for legal advice, and I cant say i blame her as my IVA has nothing to do with her.
I have been told if she doesn't sign this form {she has signed the RX form) the property wont be included in the IVA and it is unlikely to be approved.
Help please.
Hi riobails and welcome to the forum, unfortunately, I can't answer your query, however, I'll bump this up so a professional poster can whom I'm sure will be along shortly.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
She has been correctly advised to seek her own legal advice, and it is important for her to know what your obligations are with regard to the property and your IVA.
If you are not going to sell immediately, and your ex-partner is happy with this, then the RX1 is merely a matter of some formality, however she does need to understand the implications of signing the document in advance.
thanks for your reply melanie {and Lesley). The point is that she has signed the RX form but it's this other form that says 'the house will not be sold during the next 5 years'. This is the stumbling block!
I dont think its an official form. I'm dealing with the CCCS and they have produced a letter with 4 options:-
I have taken/not taken legal advice and agree that the house will not be sold during the duration of the IVA
I have/have not taken legal advice but am not prepared to sign this agreement.
As I said the RX has been signed.
I've not heard of that form before. We just had to sign the RX1 so we could sell our house, but any equity would be paid across to the IVA.
We do have an expert from CCCS who posts on here, so hopefully she will pick up on this and advise further.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
If your IP refuses to prepare the documents find an IP who will. You have signed the restriction which protects the interests of creditors and that should be enough.
Your ex cannot be coerced into signing something that binds her hands for five years so find a new IP.
Riobails has already set out the 4 options. CCCSVA write to the joint owner to explain how the IVA will affect them and ask them to reply to confirm their position. The suggested options are whether the partner is happy for the IVA to proceed (or not) where there is a month 54 remortgage and if in making their decision, they have taken legal advice (or not).
Riobails - CCCSVA will have answered any questions raised by your ex partner and if you would like discuss these, please contact CCCSVA and they will be happy to answer your queries.
Sarah
CCCS is a registered charity. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
Hi everyone, my house is also in joint names with my ex, but as part of the divorce agreement (put in place a year before i entered into my iva) it has got to be sold, it has been on the market 2yr and still no sale(it is in negative equity).
However my ip didnt contact him, and i havnt had to sign an rx1 form - is this because my circumstances are different to Riobails, in the fact that the house has got to be sold anyway???
This seems a bit odd as he should have been advised to seek independent legal advice. I assume there has been an allowance made in your list of creditors for the shortfall that could arise when the property sells, otherwise your projected dividend will be affected. In addition, your ex will be responsible for the shortfall in his own right and he should be aware that you sought protection from your creditors.
Who is living in the house and who is paying the mortgage?
That is a good procedure Sarah - I tend to take the view that the signing of the RX1 from by the non-insolvent partner is acceptance of the IVA terms and agreement to the remortgage, but the CCCS' belt and braces policy seems a good one.
I wonder how many people actually do go the lengths of taking legal advice over this very important area?
Thanks for the replies everyone.
Do I understand this correctly-its only CCCS who ask for this form to be signed, so if I deal with another co. the RX1 would be enough.
I have spoken to my advisor at CCCS who has told me if this extra form isn't signed they will not be able to include the house in my proposal and it might well fail.
I understand that if we wish to sell the house I would have to contact my supervisor for a variation order so cannot see why my ex has to sign a form saying the house will not be sold for the duration of the IVA.
Peoples circumstances change and although there is no immediate plan to sell it might have to be sold within the next 5 years.
Despondent, fed up and not sure what to do now!
