My wifes name appears as the owner of the house we live in and there is substantial equity in it.I do not pay the mortgage payments. Would my creditors, who might be involved in an IVA, be able to obtain a legal charge against the property even though the debts are mine alone?
Hi and welcome
If you have been together for a number of years creditors may feel that you have acquired a beneficial interest in the property and as such may want you to release some equity as a condition of any IVA.
Creditors do not obtain a legal charge as part of the IVA process instead they place a restriction at the land registery notifying the IP of any sale etc
Regards
Hi Kenneth and welcome to the Forum.
It is unlikely creditors would have a claim against the equity but there may be some queries. For example, creditors may want to know how long you are married, who paidd the deposit, why is the property in your wife's name etc. If it can be shown that you have not contributed towards the property and it was always your wife's there should be no issue. If however, it is clear you have contributed towards the housing costs or the reason your name is not on the mortgage is because of previous adverse credit, creditors may ask for an equity release in exchange for accepting your IVA.
You should seek some advice from an IP firm which will take into account your personal circumstances.
