My wife is applying for a iva and I have been asked to sign a rx1 form

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gary408
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by gary408 » Sun Jan 07, 2018 6:07 pm
My wife is applying for a iva and I have been asked to sign a rx1 form. We live together however the mortgage is in my name only and comes out of my bank. We do not have any joint bank accounts but she did pay the utility bills. We have two young children together. Should I sign the rx1 and can they force me to re-mortgage because she has beneficial interest?
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Foggy
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by Foggy » Sun Jan 07, 2018 6:19 pm
gary408 wrote:
My wife is applying for a iva and I have been asked to sign a rx1 form. We live together however the mortgage is in my name only and comes out of my bank. We do not have any joint bank accounts but she did pay the utility bills. We have two young children together. Should I sign the rx1 and can they force me to re-mortgage because she has beneficial interest?



Is she applying with Payplan, by any chance ?

If the mortgage is in your name only and the title is in your name only it is not for the IP to decide on beneficial interest and is not a matter of his opinion --- even judges in court have differing views in matrimonial matters ( the more common time a beneficial interest has to be established ). There should be no equity clause in the proposal, so no need to sign an RX1.
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J5453
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by J5453 » Sun Jan 07, 2018 7:07 pm
Hi,

This doesn’t sound right. I’m no expert by any means but my IVA contained the clause of re-mortgaging in the last year as I had a joint mortgage when I entered into it. If it’s only your name on the mortgage then it shouldn’t be included in your wife’s IVA. It’s her IVA not yours.

As it was my circumstances changed half way through the IVA, I had no equity to give over when the time came so what they can and usually do is add an extra year onto the IVA particularly if you have no property to consider which should be in your wife’s case.

I live with my new partner now and he owns the house, my name is nowhere near it other than I pay half towards the mortgage as part of my expenditures which my IP is totally onboard with.

My IVA was varied at a second creditor meeting and they agreed to this extra year turning it into a 6 year IVA.

Not sure if any of that helps to explain things?
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J5453
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by J5453 » Sun Jan 07, 2018 7:10 pm
Just to add, my new partner was never asked to sign anything either.
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Lisa Thomas
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by Lisa Thomas » Mon Jan 08, 2018 11:16 am
I agree with Foggy - this would make sense if the property was jointly owned but it is not in this case so don't see why the RX form is necessary.

I wonder if it is an oversight and the IP has sent out a standard letter in error forgetting the property is not in the debtors name.

If in doubt you should seek legal advice from a specialist insolvency solicitors.
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Foggy
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by Foggy » Mon Jan 08, 2018 11:22 am
Lisa Thomas wrote:
I agree with Foggy - this would make sense if the property was jointly owned but it is not in this case so don't see why the RX form is necessary.

I wonder if it is an oversight and the IP has sent out a standard letter in error forgetting the property is not in the debtors name.

If in doubt you should seek legal advice from a specialist insolvency solicitors.


Lisa, there are a couple of the more "creditor - centric" firms who have been mentioned as trying this tactic and assuming a beneficial interest. In my view this is not a straightforward thing to prove and should never be assumed. Personally I would go to another firm if it is anything more than a clerical oversight.
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