My husband knows nothing of my debts and we have completely separate finances

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caroline360
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by caroline360 » Wed Aug 02, 2017 4:55 pm
Hi, I'm currently in the process of applying for an Iva. My husband knows nothing of my debts and we have completely separate finances. He owns the house in his name and I have never contributed towards the mortgage. If he found out about my debts it would be the end of our marriage. What is the likelihood of the creditors accepting my proposal? Or are they just going to refuse it on the grounds I could technically get my share of the house through marriage?
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Foggy
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by Foggy » Wed Aug 02, 2017 5:01 pm
The creditors will not probably consider this as the proposal put to them will not mention a claim to equity if the IP doesn't mention it. Most firms will probably stay mute on the subject -- the house is not yours and an equitable interest is hard enough to decide in divorce proceedings, so an IP has no grounds -- however a few firms will try, by either forcing the issue or extending the IVA instead of equity at the outset -- I would avoid these like the plague. I have seen reports of Payplan trying this.
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luluj
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by luluj » Wed Aug 02, 2017 7:30 pm
I can fully understand your reasoning for not wanting to inform your husband however would urge you to think it through further.
Living in a iva for 5 years or more may prove difficult without him realising things are not what they used to be. Firstly his income and expenditure will be taken into account when considering what your repayment will be - they may well ask for proof of details which he will need to provide. Secondly you will be very restricted in what you can afford to do ...your budget will be set quite tightly with little room for improvement each week.

You need to, in my opinion, work up the courage to share your burden with him - you maybe very surprised !
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Michael Peoples
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by Michael Peoples » Thu Aug 03, 2017 7:56 am
I agree that it would be best to tell your husband but I also agree with Foggy that the property should not be a problem. Creditors may ask for an extra year's payments in lieu of any potential interest you may have but that would be it. Your IP has no right to ask for proof of your husband's income and should operate based on what you know and can say. He is in no way responsible for the debts so do not worry about that.
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