My husband completed his IVA in Aug 2013, we received the completion certificate March 2014. We are now looking at selling his flat he owns with his ex-wife. However there is a joint unsecured section to the mtg that was included in the IVA for my husband. When we sell is the mtg company going to force my husband to pay his share of the equity to pay off the joint unsecured section? if so this will mean that my husband would have ended up paying more than the debt he owed before he was in an IVA
No, his liability for that loan is finished, however the ex-wife will be liable for the full amount, less any payment received from your husbands IVA, so the available equity may be less than expected
As Andy says, being a joint loan, the ex wife will be required to pay the outstanding amount, which will be deducted from the sale proceeds. Your conveyancer should be made aware of this so that he can aportion the net proceeds correctly.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Any repayment should only be taken from his ex wife's share of the equity and if there is not enough then she will be liable for the rest. Make sure no one uses his equity to repay the debt as he does not owe anything.
