if an iva practitioner would be willing to put in writing my wifes home will not be affected/equity release due to my "beneficial interest" i will consider an iva with them.
I doubt you would get anyone to do that if you have a beneficial interest as they would be wanting you to try and release some of your share of the equity towards the end.
I could be wrong on that so do speak to a few companies and put the question directly to them.
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
It may depend in part on why you don't co-own the house. I know of couples who are in business and make a conscious decision to put assets in one name and debt in another...even though assets were bought post-marriage with joint money. I can see why creditors wouldn't be happy to disregard a beneficial interest in these cases. But if it is a genuine case and your wife bought the house with her own money and you haven't contributed to the mortgage or upkeep, then I'm sure you will be able to find an IP willing to exclude the property in the proposal. Whether creditors push for it's inclusion is another matter. But by virtue of not contributing to the mortgage etc they should be getting a huge chunk of your income and may be perfectly happy with that!
she purchased house in 07 i have lived there since that time also.
i pay to her half of her mortgage and bills.
would it be stipulated at the outset whether the house would be involved or do the creditors make an off the cuff decision at the 54 month stage?
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 you proposed excluding the property, the creditors would need to include the property and equity clause at the meeting as a condition of acceptance. They couldn't spring it on you in month 54. If you didn't disclose the situation, this could cause problems later on.
It is tricky as you do have a beneficial interest in the property, but presumably you would only need to release equity based on your share. Did you contribute to the deposit? What % of the mortgage do you pay? Depending on how much your share is worth, there may not be a lot to release and it could even not qualify under the terms of the clause.
Best thing is to speak to.an expert and explain everything to them. They are the only ones who can give you a definitive answer.
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 pay 50 per cent of the monthly requirement to my wife i did not put anything toward deposit
i would be truthful and disclose all relelevant info
so that is 100 per cent they can not spring it on me
i would know exactly where i stand then from day 1 of iva and right through to final day and thre can be no alterations yes?
The iva is a legally binding contract on both sides. You would have to make sure you read a proposal.thoroughly and of course there is always the possibility that even if it wasn't in there, the creditors could add it as a modification at the creditor meeting.
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
Bear in mind that myself and BOL are not experts so you should pick up and the phone and ask the specific question. It may be that they will be able to give you more in depth advice
The advice is free and you're under no obligation.
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
Absolutely - you need to speak to two or three professionals for advice. If you did put forward a proposal excluding the property and creditors wanted to include it, you can say no and the proposal is then rejected and the iva doesn't come into being. So do speak to a couple of experts and see what they recommend; it's not worth writing off an iva just yet! However, if you are really uncomfortable about this, you could look into a dmp as an alternative. The professionals you speak to an advise on this too x
There will be a way out of debt for you. It seems hopeless to all of us at the start, but no one is left to deal with this on their own. Have you spoken to a debt advisor yet?
I don't necessarily agree that Michael has a beneficial interest in the property - and think that we need to be careful giving this sort of advice on the forum where these issues are definately complex and difficult to prove.
It strikes me that Michael is simply paying his wife rent for living in the property, and that this will not infer a financial interest in the property - especially as he did not contribute towards the capital purchase or any improvements made to the property.
This arrangement will need to be fully disclosed to creditors, and no IP can confirm in writing what the actual outcome will be until the creditors meeting - but they will be able to confirm this at the time of acceptance, and I don't think that Michael has anything to worry about here with regard to proposing an IVA and protecting his wife's property at the end of the day.
