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My girlfriend is currently considering approaching her creditors to enter into an IVA. I will pass this web site on to her to contact you for any advice but I also need some if possible.... I am currently looking at buying a house, which my G’friend would live in, and pay into, because of this she wants to be recognised on the property deeds as having an interest.

My question is…
During the application process for the IVA will they take this property into consideration and request that she frees up equity to repay them?
And
Worst case if she has to go bankrupt, this truly is the last step as she currently works as a paralegal, can they look at taking the house as one of her assets?

Thank you in advance for your help.

Regards

Hi sean

If your girlfriend is going to acquire a financial interest in your property, then this will have to be declared on her statement of affairs as an asset. Creditors may well then ask her to release any equity during the final year of the arrangement.

Personally, if I were advising you, I would definately not agree to her putting her name on the deeds, as if her IVA fails and she is declared bankrupt, her share of any equity will vest in a subsequent Trustee in bankruptcy.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Sean,

Firstly your girlfriend shouldn't approach her creditors if she is thinking of an IVA as they will almost certainly try to talk her out of it, she should approach an Insolvency Practitioner or (decent !) IVA company.

Even if your girlfriend is only 'nominally' on the deeds you would have a hard time convincing the relevant parties she has no financial interest and if she does have something to contribute questions will be asked as to why she is not contributing it to her debts. In short it could land YOU in whole heap of trouble.

It sounds harsh but until she gets it all sorted out you want to keep her at arms length (financially speaking of course) !!

You can always transfer into joint names when it all blows over.

New to the forums - but not to debt !

Thanks for you help.

I have passed the details of the forum onto my girlfriend and i am sure she will be contacting you shortly.

Thanks again

Sean