which way to go

[newlife]

any advice welcome, in sept 07 i started an iva and in january 08 my ex divorced me but still lives in the family home with my kids and now pays the mortgage although i still am liable for the mortgage and own a share of the equity but not live there, i have ceased paying the iva for 6 months on my ip`s instruction as i now have to pay rent and maintenance,
as i cannot realisticly see any way of ever paying of the iva would bankruptcy be a better option and could the official receiver force a sale of the house.

[MelanieGiles]

What financial settlement have you come to with regard to the house? And is there any equity in the property which would be at risk under bankruptcy proceedings?

[chris.g]

Hiya and welcome to the forum,
br could be a way forward for you but the house would be seen as an asset. Your ex would have to buy out the beneficial interest...your share of any equity...from the OR.
It may be helpful if you could post your disposable income, list of creditors and amounts owed to them so the experts can answer you better,

[newlife]

at the moment no official agreement on the house as i have been informed by my solicitor i would most likely lose a request to sell the house at court due to the children, equity of about £30k split 2 ways, was going to remortgage at year 4

[MelanieGiles]

If the children are young, it is usual for any equity release in your favour to be delayed until either your youngest child leaves full time education or your partner remarries or co-habits.

[newlife]

thanks chri.q

what if my wife could not afford to buy me out,
my disposible income is zero after paying all my commitments and maintenance, total iva £90k

[newlife]

thanks melanie

if i chose bankruptcy could the or overrule a family court decision on the house ie house got to be sold to pay creditors or is the family court decision final?

[MelanieGiles]

Yes potentially - but they would have to have very good reason to make an application, and demonstrate that this was done in order to direct assets away from your creditors. The Trustee could then take a charge over your property to be repaid once the equity became available.

[newlife]

thanks melanie

as the kids are young it would be at least 12 years before the equity was available, if i chose bankruptcy would this mean that i would not be released from that until the equity was paid to the official receiver?

[chris.g]

No, you would be discharged but the charge on the property would stay until the house was sold and the equity released,
xx

[MelanieGiles]

You would be discharged from bankruptcy after one year, but the asset would remain with the OR under the charging order.

[newlife]

thanks melanie

just so i am clear, what happens to my iva if i went bankrupy as i have no disposible income to maintain any payments and i appreciate that we are vearing of the subject a bit but would my liability to pay the mortgage cease?

[MelanieGiles]

No - secured debts are not affected by either an IVA or bankruptcy procedure.

[chris.g]

Any secured loans would still need to be paid, as the creditors could apply for repossession if you default

[newlife]

thanks, and what happens to my iva?