if my wife solely owns our house

[ken748]

if my wife solely owns our house and i take up an iva will that be effected

[Andrew Graveson]

Hello Ken and welcome to the forum,

What is the background to your wife being the sole owner of your home?

The answer will be important for others to give their opinions on your question.

[ken748]

hi she bought the house before we met i have lived with her around 2 years married for 1

[carlmcmullen]

HI Ken,

And are is there any equity in the property at the moment ?

[ken748]

no i wouldnt of thouhgt there would be any equity shes only had it just over 2 years

[Andrew Graveson]

Hi Ken,

Do you contribute directly to the mortgage or have you ever done so?

[ken748]

yes i contribute to the mortgage

[ianmillington]

Hi Ken

When you say that are these direct payments or simply paying your reasonable expenses of occupation?

Ian

[MelanieGiles]

If there is no equity in the property, then the likelihood of your wife being affected by an IVA now is remote. However, do remember that in an IVA your are not discharged from your debts until the end, so during this period if property prices increase and you continue to contribute towards the mortgage and running costs of the property, you may well develop a beneficial interest in the property.

This will not be a problem if your IVA continues as initially proposed, however if you default on your payments and this results in a bankruptcy, you may well find a Trustee claiming a share in the property. I have successfully brought a similar action as Trustee in bankruptcy against a solely owned property which was relatively easy. It might be sensible to have a chat with a solicitor beforehand, to see if you could protect your wife through a legal declaration of interest if you are at all worried.

[ken748]

hi mel

thanks for the advice thats good news i have a guy from a company called debt free direct coming tonight to talk to him about it and to see if i qualify for a iva

[MelanieGiles]

I will be interested to know how they advise you on this point ken, so do drop us a note tomorrow to let us know.

[ianmillington]

We were both typing at the same time!

I would hope the DFD consultant will take Ken through the same process. Ken, specifically ask the question as you have put it here, and see how he performs!

[ken748]

hi will do thank you both

my situation is this:

i have unsecured debts of around 65k to 7 creditors, i currently have arrangements with them individually and pay out around 600 per month my situation has changed as we have a baby now and are stuggling to keep up payments. doing my income/expenditure i have now around 300-400 spare. do you think i will get an iva?

[ianmillington]

I assume you have been making payments for a few months now? On that basis I imagine you've got the right type of history i.e you have been making an effort.

At £300 you are showing less than 25p in the £ - at £400 you are showing more (about 27p). Don't be pushed into paying the £400 if you can't realistically afford it.

Ian

[MelanieGiles]

With there no longer being a hurdle rate of 25p in the£, this does look like an IVA would be one option - do make sure that you also consider bankruptcy proceedings as well - as with no equity in the property and a young family to look after, perhaps a complete fresh start could be a better way forward.