Let property in my wifes name

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mark990
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by mark990 » Tue Jun 05, 2018 1:53 pm
I started my IVA in April and am two months in now which is a huge relief. I just wanted some advice about the point where my wife and I will have to try and re-mortgage our home to pay the balance off at the four and half year point - providing we are unsuccessful at this point the IVA will continue for a further year taking us up to 6 years and then any debt remaining will be wiped at that point. My only concern is my wife has a property which we rent out which is currently in joint names - could they force us to sell that to repay the balance owing? Should my wife put the property just in to her name to be on the safe side?
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Foggy
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by Foggy » Tue Jun 05, 2018 2:21 pm
mark990 wrote:
I started my IVA in April and am two months in now which is a huge relief. I just wanted some advice about the point where my wife and I will have to try and re-mortgage our home to pay the balance off at the four and half year point - providing we are unsuccessful at this point the IVA will continue for a further year taking us up to 6 years and then any debt remaining will be wiped at that point. My only concern is my wife has a property which we rent out which is currently in joint names - could they force us to sell that to repay the balance owing? Should my wife put the property just in to her name to be on the safe side?


Has this property been declared to your IP as an asset? Removing your name now could be viewed as a means to deprive creditors of any value they might be entitled to. If this has not be declared to your IP the IVA could be at risk of failure for non-disclosure and the matter is better dealt with now, in the early stages, rather than jeopardising the IVA after you have made several years payments.
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Shaun Vickery
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by Shaun Vickery » Tue Jun 05, 2018 3:02 pm
I agree entirely with Foggy, also did you declare the income from the rental property to your IP?
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Lisa Thomas
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by Lisa Thomas » Tue Jun 05, 2018 3:48 pm
This property should have been declared and dealt with in your IVA proposals - how was it treated in the IVA?
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mark990
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by mark990 » Tue Jun 05, 2018 5:13 pm
Thanks for getting back to me on this and yes, the property was declared as a joint property as part of the IVA and has currently been factored in to the payment plan so as this is the case you would advise me to keep it as such?
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Shaun Vickery
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by Shaun Vickery » Wed Jun 06, 2018 9:16 am
Check your paperwork - it will show whether the property is included or not. If so the IP will be unlikely to release their interest and therefore you won't be able to transfer it into your Wife's name anyway.
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Lisa Thomas
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by Lisa Thomas » Wed Jun 06, 2018 10:22 am
You won't be able to gift your assets away as this will be in breach of the IVA (and probably not possible anyway if there is a restriction on the property).

This could void your IVA and if Bankrupted, be overturned anyway.
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mark990
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by mark990 » Wed Jun 06, 2018 4:00 pm
Thank you Shaun and Lisa for your replies. There isn't a restriction on this property but it was declared as an asset when my IVA was being set up and my share of the income and expenditure relating to it was taken into consideration when agreeing my payment plan so I think from what you've both said we will have to leave the property in joint names as I don't want to void my IVA by transferring it into just my wife's name. Thank you for your advice.
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Lisa Thomas
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by Lisa Thomas » Fri Jun 08, 2018 8:27 am
Is your wife in a position to buy your interest from you instead? This could be a way to end the IVA early via a F&F...
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mark990
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by mark990 » Fri Jun 08, 2018 3:57 pm
Hi Lisa

Unfortunately no, my wife isn't in a position to buy me out and repay the IVA early. She would only just have been able to afford to take the mortgage on in her own name for the buy-to-let property. If, further down the line though, we were to settle the IVA early do you still incur the fees?
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Lisa Thomas
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by Lisa Thomas » Mon Jun 11, 2018 8:13 am
Yes ther is often a variaiton fee charged by the IP - the average cost charged tends to be £500 but the flip side is creditors are saving on the future time costs being charged by the IP due to closing the case sooner.
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