Unfortunately my husband has left and we are going through a divorce. Our iva started in September 2018 and we have a mortgage where we are expected to release equity in the 5th year.
We are selling the house ASAP and we have a secured mortgage loan which I assume any equity would have to go on that before the iva.
What then happens with the iva? Will we have to continue with it etc
You say "the" and"our" IVA .... are you both in IVA's ( they do not come as a joint IVA, but two interlocking ones, if you are both in arrangements) ?
Any equity will only be based on whatever is left after settling secured lending and legal fees, these will come out first.
The IVAs, if interlocking, will need to be split and each of you will then be responsible for your own arrangements and payment going forward --- this is assuming that the house sale does not clear everything. You will each have to do another I&E to determine if the IVAs can continue ( can you afford them?) and, if so, the new payment levels will need to be calculated, taking into account your new, seperate, expenses.
Now, when my marriage went south, it was discovered that neither of us could carry on paying anything and we put forward a full and final offer based on payments made to date ... basically asking creditors to 'call it quits' --- and they agreed !
You really need to have a frank chat with your IP, sooner rather than later, as they will also need to get involved with the house sale if they have, as they should have done, placed a restriction on the title.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks foggy, yes it is an iva with both our names on.
I will be able to carry on with the normal monthly payments as I will be living with my parents so I won’t have any household bills, however I’m worried that my payments will probably increase because I will have more disposable income. My husband however won’t have as much disposable income as me as he will be paying rent on a new flat etc. If I ended up paying more than him into the iva, is that fair or do we have to pay the same amount?
In the normal situation with interlocking IVA's, you decide between you who pays what --- the IP doesn't care as long as the agreed payment is met in full each month. You could carry on, 'as is', after a new I&E .... but, if he fails to pay his 'share' the whole thing could go down the toilet !
Personally I would get the split and each pay whatever is due towards their own debts. Although you are living with parents you will still have food and groceries to buy and a share towards utilities --- 'board and lodge', as it used to be called. So your disposable income might not go up that much.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We are probably going to split the iva. At the moment it is just me paying for all the bills as my husband doesn’t have a job at the moment. So I have no disposable income at the moment. My parents will want me to put forward a F&F for just me. Do you think we can put any amount forward considering the circumstance?
Sorry I mean a full and final offer. Once the iva is split my parents will want to put forward a full and final offer for only my side of the iva. So after the next review say I could only afford £100 a month for the next 4 years, that’s £4,800, my parents would then look to offer in the region of £2000. I’ll have a chat with my IP see what they say
