Is it possible to get an IVA without an equity clause?

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by marcus812 » Tue Mar 13, 2018 4:37 am

I would like to know if it is possible to get an IVA without an equity clause, if I am a homeowner (joint mortgage)? It is unlikely that there would be enough equity in 5 years time to trigger the clause, unless there is a serious increase in property values. So the reality is that an equity clause is somewhat worthless, although I appreciate a creditor's point of view of this.

If this is not possible, would my wife have to know or agree to the RX1 form? I ideally want to keep this secret from her as I fear this would be the end of our marriage, and I would be in a very bad place if I could only be a part time dad. I realise that this is what I deserve, but our marriage / family is otherwise pretty good and I wouldn't want my kids to be affected. We are not financially linked on anything other than the mortgage.

I know keeping this secret is not ideal, but as I say, things are otherwise pretty good and I am happy to keep the burden of my debts to myself. If my wife has to find out, I would rather declare myself bankrupt, which would almost certainly be a worse financial return for the creditors.

I would really appreciate some non judgemental advice.

Many thanks

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by Foggy » Tue Mar 13, 2018 7:56 am
Hi Marcus. An IVA is a pretty big secret to have to keep and, to be straight, that strain in itself can destroy a marriage. As for equity -- yes, you can negotiate an IVA to leave out the property -- BUT both IP and creditors would need to agree. Often this is done by simply tagging on the extra 12 months "up front" and then excluding the house (it is entirely possible -- and has happened before -- that house prices will shift significantly over a 5 year period, so very unlikely that they would simply ignore a property without some compromise). If an RX1 is required, yes, you both need to sign it.

Declaring yourself bankrupt would do nobody any favours and, if you think an IVA would break the marriage, BR certainly would! For a start you would probably lose the house, as well as having to deal with the debt solutions repercussions --- an IVA is designed to protect the house as far as possible.
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by Itsallouttherenow » Tue Mar 13, 2018 8:55 pm
Hi Marcus
I don't know about the equity clause but I do know a lot about keeping debt a secret. Tell her. Tell her now. The burden of keeping debt a secret is huge and it will start to effect you in many ways. I kept my secret for far too long and began to lose weight, lose sleep, lose energy to do anything.
I too was scared to tell the truth due to the possibility it would end our marriage. I thought the worse scenarios over and over. I was terrified the night I told him. It all came out and he was terrific. Mad at me for not telling him sooner. But terrific. Very supportive and non judgemental. He understood a lot of the debt was due to bringing up a family and that it had spiralled out of control. He was angry at himself for not realising!
Our relationship was good whilst I kept it secret. Now I've told the truth it's even better. A lot better in fact. It was the hardest thing I've ever done and the scariest but telling him. was the best thing I've ever done. Just wish I'd done it sooner!
I know everyone's situations and relationships are different. But as they say honesty really is the best policy.

Good luck and ket us know how you get on.

Sarah x
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Lisa Thomas
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by Lisa Thomas » Thu Mar 15, 2018 10:18 am
It is possible to offer non- 'standard' protocol terms so you could make the proposal more flexible but would probably still need the RX1 signing.

As Foggy points out take proper advice before going Bankrupt as you are at risk of the property being repossessed and sold if it moves into equity over the next 3 years and your wife will be written to by the Trustee.
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