My husband took an IVA without my knowledge

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abigail570

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Post by abigail570 » Thu May 07, 2020 4:46 pm
Hello, I have tried to find my answers online but can’t only advice for the person involved with an IVA or wants one.

I have discovered that my husband has taken out an IVA behind my back without talking to me using our house against it. Having to remortgage in 60 months for at least £20,000. I have received no communication regarding this, surely this is not right when it affects me too? Should I have received paperwork/phone call?

I have paid all mortgage and bills from my personal bank account for years and paying off chunks of mortgage only having 9 years left. Fixed rate just arranged for 7 years which will mean a big admin fee to remortgage in 60 months. I have emailed the company who tell me that the arrangement does not affect my share of house which I assume they have taken to mean half. That is all they have said and not answered my questions regarding how it affects me being jointly attached. It clearly does if a remortgage is needed to pay it and I will have to get longer terms to pay for it. I am 8 years older than my husband turning 50 shortly so this is ruining my financial future.

What other options are available to pay this at end of 60 months. Can I not remortgage and get a lump sum somehow? How is my credit rating affected tied to same address?

Can you send me all info regarding how a spouse is affected. I’m shocked I have had no notification. Needless to say my marriage is over due to him not telling me, I have forgiven and moved on from his debts far too many times over far too many years.

Thank you.

kallis3

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Post by kallis3 » Thu May 07, 2020 4:57 pm
Your husband does not have to tell you about his IVA but you should have been informed about the house as you would have had to sign a form for Land Registry which just means you cannot sell without permission.

Which IP cmpany are you with? Do you have any other joint debts?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Foggy

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Post by Foggy » Thu May 07, 2020 5:06 pm
First -- they should have asked you to sign and RX1 form, for the restriction to be placed on the title.

Second -- the house isn't used against the IVA, but there is a promise to attempt to remortgage or, if this is not possible, to extend the IVA by 12 months. The remortgage is intended to release a portion of HIS SHARE of the equity.

When the time comes it could well be that a remortgage is not possible (even more likely if the pandemic triggers a massive recession as expected) and the extension will apply. If the remortgage is possible and you refuse the creditors will then decide to either extend or to fail the IVA for non-compliance. This coulkd see the creditors taking enforcement measures to get their debts repaid in full ---- which could ( worst case) include bankruptcy, which would put the house at more risk that it is at present.

As regards the effect on you personally --- you are financially associated to your husband, by any joint finances, a credit search on you will reveal this and creditors may look on any credit aplication you might make with more caution due to this association. But this is not a foregone conclusion. If you have any joint unsecured loans you will be now fully responsible for them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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abigail570

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Post by abigail570 » Fri May 08, 2020 11:13 am
Hi Guys,

Thank you for your informative answers at last I can be constructive instead of driving myself mad with worry!

I have not received anything from land registry, this RX4 form when do they send this out, is it at application or when done and dusted and creditor approval confirmed and IVA in place? I am unsure if Covid-19 holding up post or has my husband intercepted it.

Thanks

kallis3

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Post by kallis3 » Fri May 08, 2020 11:27 am
Should be sent out before hand but the IP company should pick up on the fact that you have not signed this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Fri May 08, 2020 11:42 am
Fri May 08, 2020 11:13 amabigail570 wrote:
Hi Guys,

Thank you for your informative answers at last I can be constructive instead of driving myself mad with worry!

I have not received anything from land registry, this RX4 form when do they send this out, is it at application or when done and dusted and creditor approval confirmed and IVA in place? I am unsure if Covid-19 holding up post or has my husband intercepted it.

Thanks
My apologies -- this should be an RX1 ( RX4 is to withdraw the restriction ) I have amended my original post.

The RX1 should have been given to both of you to sign at the start of the IVA. It could be that the IP has neglected to enter a restriction. They are usually dealt with during the first 6 months or so after formal acceptance, but there is no limit on this. They do not always get lodged. You could check the title deed at Land Registry to find out. In any event, the IP should have checked with you that you were 'happy' to seek equity release in due course.

When was the IVA entered into ( accepted by creditors) ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kallis3

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Post by kallis3 » Fri May 08, 2020 11:54 am
Which company is he using as a matter of interest.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

abigail570

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Post by abigail570 » Fri May 08, 2020 12:20 pm
Thank you again great advice.

No I have received nothing and the company he is using is Credit Fix. They have answered my email and told me that they do not need to communicate with me or ask my permission as they are dealing with him only and his assets. I will check the land registry.

Kallis3 thanks for the wonderful quote you have sent me.

abigail570

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Post by abigail570 » Fri May 08, 2020 12:28 pm
Meant to put in last reply that IVA looks to have started in February. Ironically lol, 14th February was when he started paying monthly payments.

Foggy

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Post by Foggy » Fri May 08, 2020 12:38 pm
Hmmm -- unfortunately he has chosen a company prone to bucking the trend and doing things their own way --- which has caused ripples in the past and, indeed, has, so far, resulted in one court judgement, which went against them.

I would politely inform them that the house is a joint asset and your husband has no authority to pledge anything in this regard, without your permission. The problem is that CF will be happy to carry on the IVA, even in the knowledge that it cannot be completed without your agreement, or that they fudge the rules yet again --- after all, they are getting their fees, which is their main concern (or so the courts would have us believe).

You could lodge a formal complaint with CF which you could then escalate to their regulatory body via the Government Gateway here: https://www.gov.uk/complain-about-insol ... actitioner

Do bear in mind the potential ramifications of a failed IVA, as touched on in my earlier response. It may be wise to seek professional legal advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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