want to know how safe our home is

[shelly-]

my former husband states he has started an iva.i am now a single mother to our two children and want to know how safe our home is as i have read that an iva usually involves releasing equity and having to remortgage towards the end of the term.

[Sadsack]

Hi shelly and welcome

Could you post a bit more information regarding your situation - ie Is the house in both your names? What is the level of his debt? Who his creditors are and how much is he paying into the IVA? Is there any equity in the property?

There are creditors who require an equity release at around year 4 of the IVA so as to give them the best return.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Adam Davies]

Hi
If the house was involved in an equity clause you should receive corrosponDence from your former husbands IP.When did he enter into an IVA ?

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

[JulianSampson]

Hi Shelly

If (or when) your husband's IP makes contact you should see your own family solicitor as it is very important to have your ancillary affairs around your former marriage tied up and this should include dealings with the family home. I would have expected a judge to want to establish this before a divorce was granted.

Quite apart from this any IP or professional for your former husband will want to ensure you receive independent legal advice to ensure any action they take does not run the risk of being reversed.

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[ray_a]

The Courts will not want to endanger the family home and I suspect that this is a major problem for your husband and his IP.

The only other thing that I could say is did you sign a legal agreement for the house to be valued and an equity release arrangement to arise?

[shelly-]

the house is in both names until i can hopefully get him to agree to remove his name!!my former husband has only just entered into an iva(so im told) so i am still recieving letters demanding monies and threats to charge the property that i am currently residing in with my children.this property is being threatened with a possession order and i have had no correspondance regarding equity release and valuation of either this property or the 2nd property im hoping to move to.
his debts are in the region of £65,000 which are in his name only and some of these are personally guarenteed against his previous buisnesses.

[JulianSampson]

Shelly- I am sorry to sound so short but please take urgent matrimonial advice. You need to get these matters, not to mention the support for your children, sorted as hoping that he will remove his name from the deeds is too naive in the short and long-term.

Quite apart from this they can assert your independence from these debts to the creditors. You want them to be referring to the "doctrine of exoneration" for this (essentially the debts relate to your H's business from which I presume you received no real benefit).

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[ray_a]

I also think that by getting a financial settlement regarding the house will at least give you some protection.

However it could be that unless you can maintain the mortgage payments there could be a real problem.

In addition, you might to consider selling the house and I know you aretrying to prevent this but if sufficient funds could be raised with a family court order there may be capital you can realise so that you could either buy a cheaper property or go into the rental secto.

I do think you need some legal advice though because it is basically I am afraid a court job!

Is there any chance of him trying to talk to you about this?

[shelly-]

i have made an application to the legal commission service however i have been refused on the basis that i have £23,000 capital of which the majority of this is in the 2 properties which are in dispute!!so basically i have got to find £170+vat per hour to pay my solicitor who is dealing with the divorce with the legal aid scheme.i feel iam stuck at the moment as the mediation sessions which my former husband and myself was attending has been cancelled by my husband and im not sure he will resume these in the future.in the meantime i am not sure how many more charges to the property will be made and if he will agree to give the bank possession of the matromonial home to avoid further court costs by them.

[MelanieGiles]

If your husband has a legal interest in the properties, then the fact then you should ask for a copy of his IVA proposals as soon as possible to see whether that interest was declared to his creditors.

If so, it is almost certain that there will be an equity release provision contained somewhere, which you would have had to agree to at the time he entered into his IVA. If you did not agree, or he did not tell you about this, it is arguable that his contract with creditors is voidable - but that could bring additional problems for you in that he may well then find himself bankrupt and a Trustee in almost certain to pursue that interest.

Getting copies of the documents your husband signed is a first point of call, and if you cannot afford a solicitor, the CAB to give quite good initial financial advice free of charge.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[JulianSampson]

Shelly

I appreciate your concerns regarding costs- I have to confess that (even for me in Guildford) £170 an hour is at the high end for matrimonial advice and you could ask for a more junior qualified solicitor to assist. Alternatively agree a budget with the solicitor above which they will not go. With appropriate advice you will benefit in spite of the cost I can assure you.

One free and easy thing for you to do is to sever your joint tenancy at the Land Registry. Either the CAB or the Land Registry will help you to do this- check online as they have very useful practice guides.

This might allow you an easier ride in forcing a sale (I see you mention you have two properties so perhaps the investment property might be a good start for both you and your former husband who could apply the released equity).

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[ray_a]

I agree it would be best to find how much equity there is in the second property nad see if this can be sold! I have to admit that this case is very strange as I would have thought the creditors when the IVA was being set up may have requested the property to be sold.

Shelly I think it would be wise to spend £500 on this just to find out what is going on and a good solicitor would start legal proceeding to determine from your husband just what is going on. Please keep us posted as to what is happening but I think something is seriously gone wrong here from the IVA and legal points that you have raised.

Good Luck