concerened with the equity clause

[johnny.f]

I am looking to take out an IVA but am concerened with the equity clause that i've seen in many email. I currently live with my partner who is not responsible for any of my debt but is worried that the equity could be taken out of the property. I pay towards the mortgage and bills but he owns the property. Can you let me know where we stand with regards equity

[Adam Davies]

Hi and welcome
It is most likely that you will have to release equity in the fourth year of the IVA.It will only be your part of the equity that has to be released,normally 85%.
Make sure you fully understand this area before committing.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

You have no legal interest in the property, but may be deemed to have developed a beneficial interest if you have lived with your partner for a number of years and have regularly contributed to the mortgage and joint household expenditure.

Your IP will need to present your proposals on the basis that you have no interest in the property, and hope that creditors acccept this argument. If they do not, and you decided to go bankrupt, then a subsequent Trustee may pursue a beneficial interest claim against your partner - but will need to prove his claim by producing satisfactory evidence in support.

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

[Skippy]

Melanie, I don't know if you can answer this one - I have lived with Dave for 17 months but have only paid anything for the last 4 months since I went BR. When we move, obviously everything will be in Dave's name again, but could the OR decide I have any beneficial interest in the new property? As it's an interest only mortgage I am going to have to sign a document for the mortgage company stating that I have no beneficial interest in the property should it have to be sold to repay the mortgage for any reason. Will this go in my favour should the OR decide I have any BI?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

No Skippy - this is far too far away from you having any interest in the property. You have only been together for a short while, are not married and if the OR felt that he had any interest in Dave's property he would have claimed this from the outset.

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

[Skippy]

Thanks Melanie - that's something else I can stop worrying about!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/