Will joint ownership house be affected by wife's IVA?

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des
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by des » Thu Jun 08, 2017 3:07 pm
Hi, My wife has debts and an IVA has been recommended. If a 6 year payment plan was in place can it be guaranteed that our home (which is paid for and in joint ownership) won't be affected.

Thanks in advance.
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Michael Peoples
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by Michael Peoples » Thu Jun 08, 2017 3:21 pm
It is not that simple. Usually a joint owner signs a restriction on the property and agrees to investigate a remortgage in month 54. If this is not possible then the IVA can be extended by a year and the property excluded but this is not guaranteed. In addition, if she defaults on the arrangement she could be subject to bankruptcy proceedings so you as the non insolvent spouse should consider independent legal advice to protect your position.
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Lisa Thomas
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by Lisa Thomas » Thu Jun 08, 2017 3:25 pm
Any reason why its 6 years that have been recommended?

You can sometimes put forward an IVA that matches payments in Bankruptcy at 3 years or the standard IVA 'Protocol' T&Cs state that 5 years it the norm with a potential to extend for one more year if at month 54 it is established that the debtor has over £5k of equitable interest in the property.
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Foggy
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by Foggy » Thu Jun 08, 2017 4:20 pm
Thinking as a creditor might: The house is paid for ... so a good chunk of equity. This makes it a juicy prize in insolvency. I would take advice from several firms as, with that prize in sight, safety of the house isn't guaranteed. Check which terms they use -- newer arrangements can have the obligation to raise equity release via secured lending as well as remotgaging in month 54 --- some firms still do not utilise the secured lending option, which makes things a little safer -- but, who knows how the mortgage market is going to change over 5 or 6 years ?
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Lisa Thomas
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by Lisa Thomas » Fri Jun 09, 2017 8:53 am
Perhaps you could remortgage to settle the debts instead?

Ryan or Shaun on the forum can possibly help.
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