I am looking at arranging an IVA as I am struggling financially. I am separated and in the early stages of divorce, living in rented accommodation, my husband still lives in the property we have a joint mortgage on. When the divorce is finalised will I automatically have to use all the equity I receive (which is going to be very little) to pay off the IVA?
Hi and welcome
You will most probably have to pay the funds into your IVA.
Have as chat with several experts/companies and discuss all the options open to you
Regards
Thanks Andy, I presume the debt company does a land registry search to find out if I own a property so will my ex husband find out about the IVA and will we be made to sell the property if the divorce drags on as I think he is planning to re-mortgage eventually and pay me off rather than sell it.
Your ex-husband will have to be notified of the IVA so that he is made aware of how it may affect him. It is unlikely to have much effect if the intention is to sell, however your interest in the property will need to be revalued during the final year and equity raised subject to a maximum 85% loan to value ratio. Your husband will need to consent to this in advance of your IVA proposals being issued to creditors. If he intends to remortgage to pay you off in any case, this should be a perfect solution for all concerned.
Make sure the IP you choose to represent you fully explains the implications surrounging your joint ownership of the property under all debt solutions - not just within an IVA.
