My daughter is in the process of divorcing my son-in-law who is in the first year of an IVA in his sole name. They have a joint mortgage on their house which is in negative equity and he is forcing the sale of the house. The mortgage bank have hinted that he will use his IVA to avoid the consequent unsecured joint debt that will result..and the bank have stated that they will pursue my daughter for the full amount of the debt. Is there anything she can do to avoid this ? We know that the son-in-law lied on his IVA (eg did not declare his dependant..a son..and his maintenance payments) and that he did not include other unsecured debts. However, so far he has afforded to re-pay his payments on time. Can we challenge the validity of his IVA ?
I'm not sure how your son in law stands if he has not declared all unsecured creditors and not been 100% honest on his income and expenditure. However, a professional poster with concise information will be along very shortly of that I am sure. xx
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Best see a divorce solicitor asap. Can your daughter afford the mortgage by herself because the property could be signed over to her in that case. BTW, if it is a joint mortgage her husband can't force a sale so she should just continue to pay the mortgage if she can. If she can't afford to then she will be left in debt if there is a shortfall.
Yes - you can challenge the validity of the IVA if a material irregularity has occured. Get your daughter-in-law to discuss this with her husband's IP at an early stage, before shelling out money on lawyers. If the IVA does fail, this may not put her in any better position if he cannot pay anything towards the shortfall. Could she afford to take over the mortgage in her sole name?
