Completed iva and giving compensation to ex-wife

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Steve.26
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by Steve.26 » Wed Aug 02, 2017 11:01 am
I successfully completed an IVA over a year ago. During the period of the arrangement my house was repossessed with my ex-wife being jointly liable for the shortfall. I was protected from any liability but my ex-wife was not. Can she seek compensation from me now that the IVA has completed?
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Lisa Thomas
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by Lisa Thomas » Wed Aug 02, 2017 11:28 am
Not that I can think of for various reasons:

1. Your liability was to the Bank, not your ex wife. She has become liable as the debt was joint and several.
2. I presume the Bank was included as a contingent creditor of your IVA
3. Your ex wife could have possibly lodged a claim as a subrogated creditor in the IVA once the repossession was taking place. Depending on her status at the time as your spouse her claim would probably have ranked below all the other unsecured creditors in any event.
4. The Bank could have done the same but I expect they did not as they pursued and received payment of the shortfall form your wife instead.

I'm sure one of the other experts will correct me if they think I am wrong.
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Foggy
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by Foggy » Wed Aug 02, 2017 11:37 am
I agree with Lisa, from the point of view of the IVA. However, if your ex took it to court, the judge might have a different opinion from a Matrimonial Matters point of view.
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Lisa Thomas
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by Lisa Thomas » Wed Aug 02, 2017 12:15 pm
I will still suggest that the claim may have had to have been brought into the IVA, rather than a post IVA debt.
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Michael Peoples
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by Michael Peoples » Wed Aug 02, 2017 2:10 pm
I agree with Lisa. If your wife repaid the entire shortfall she could claim for half of that amount within your IVA in place of the mortgagee who would now be owed no money. In my opinion, your ex has no claim against you provided that the debt was addressed properly within the IVA.
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