will my flat be sold to cover husbands debts?

[crisi]

My husband is entering an IVA with his 24,000 debts. We have been separeted for 5 mths. On 1 June I have taken over his shares of our flat- paying him 5K and putting in place Policy which will cover me for 2 years from the date of transfer when he will declare bankrupcy. He sworn the Declaration of Solvency with a solicitor on the day of transfer. My question is: what will happen if he fails the IVA and declare banckrupcy, will my flat need to be sold to cover his debts. thank you very much for your answer

[catullus]

Assuming that £5k was a fair offer for your husbands equity there shouldn't be a problem.

You've clearly taken some advice because you mention a Declaration of Solvency which was a sensible thing to have done.

HOWEVER, to go in to an IVA you have to be insolvent so it's difficult to undertand how he could be silvent on 1st June but so insolvent now that he intends to go in to an IVA.That doesn't make sense.

[MelanieGiles]

Can I ask what equity there was in this property when you agreed the division of interests, and on what basis the agreement for such sharing was actually made? As Catallus has already indicated, the agreement looks a little odd, and may well be subject to challenge by a subsequent Trustee in bankruptcy if your husband's IVA is not accepted or subsequently fails.

Is is perhaps that the declarations of solvency was more likely a statement of means, which valued your husband's share at £5,000. If this was drawn up correctly, using the market value of your property, then your flat ought to be safe.

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

[Adam Davies]

Welcome back Mel
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]

Thanks Andy

I've missed my time on the forum and am glad to be catching up on all of the posts over the last week. Look forward to seeing you tomorrow evening and any one else from the forum who is attending the debt evening in London.

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