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
Are you likely to want to sell the house over the next five years - in which case this provision could always be varied. And at the end of the day if you decided to sell the house, there is nothing really stopping you - although you could put the IVA into jeopardy if you have agreed to raise equity during the final year.
If this is a real sticking point, then I would look to an IP firm that do not insist on such rigid terms from your partner.
If there is equity in the house, would the creditors not benefit if it is sold during the five years?
Surely, apart from the legal fees and keeping some back as perhaps a rental deposit, the remainder would have to be paid across to the IVA and that would negate the need to remortgage in the 5th year?
I do agree though that if you are not happy, you should perhaps look to changing IP companies.
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
I understand why your ex does not want to sign this form and I also understand why you are remaining in the property. Once interest rates increase and it becomes cheaper to rent than pay the mortgage the property will be sold and your equity less costs will be introduced into the IVA.
This is very straightforward and if your ex signs the form it will require a variation with the added costs to allow for a sale. Write it into the proposal at the beginning and it is much simpler and cheaper all round.
Michael - an allowance has been included in the iva for a shortfall. I currently live in the property with the children and the agreement on divorce was that we would both pay half the mortgage until the property was sold
Your ex will become liable for this shortfall so he should speak to the mortgage company before completion to arrange how the shortfall will be addressed. Given that the property is in negative equity the mortgage company will need to agree to release the charge for less than the full amount owing. You would need to see if they will sanction payment of the solicitor's and estate agent's costs from the sale proceeds or you and your husband will be liable for these too.
Alternatively, you could stay there until the property market recovers particularly if the mortgage costs are not much different to what it would cost to rent. Speak to your ex as he would have to pay maintenance anyway.
Staying in the property isnt an option - we need to sever ties. My ex doesnt want to be stuck with the property and i am hoping to move in with my partner at some point and its the non sale of the house thats preventing this - so i am thinking reposession may be the only option.
The updated 2010 IVA protocol which was sent out in the latest Dear IP has an example of the suggested letter to be sent to the partner who is not proposing an IVA for future protocol compliant IVAs. (FYI - Dear IP is a letter sent to all insolvency practitioners by the Insolvency Service). Therefore in the future all IPs who are proposing protocol compliant IVAs should soon be sending a letter similar to the ones used by CCCSVA to the partner.
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.
Surely all the letter is is confirmation that the partner has understood what signing the RX1 form means, it doesnt add any additional liability, its just so that the other interested parties int he property agree that they have been given the correct information and the chance to seak seperate legal advice if they saw fit.
My wife recently had the RX1 form and letter to sign and thought the seperate letter was a good way to make sure that she had been properly consulted and hadnt just had a form waived under her nose to sign (not that I would of done that or indeed been allowed to get away with it if i had tried).
I can understand why a partner would not want a house included in an IVA, but that doesnt appear to be what the letters about, its about ensuring as far as possible everyone understands the consequences of the forms that we sign and agree to, surely thats a good thing.
