F&F query

[outofit]

After reading these posts since my IVA was set up 18 months ago I decided to make my first one after stressing out over a dilema I have.

I changed jobs 9 months ago and have become increasingly unhappy with the position and contemplating applying for a different position which is a much lower salary. I currently pay £450 a month into my IVA giving a 34p dividend return. The new position would mean a drop in contributions to the £200 mark and I wondered if this would be acceptable with 3.5 years remaining?

An alternative I was thinking of was asking my family if they could borrow me a sum of money (up to 10k) to offer as a full and final ssettlement.

A further complication is that I have an equity release clause on my partners house as I am still named on the mortgage, even though we have seperated and I pay nothing into the mortgage and she was the original owner of the house when we first got together. She cannot remove me on this due to not being able to apply for a single mortgage on her salary at this time and also the RX1 form was signed when the IVA was set up.

Sorry about the lengthy post but any advice would be appreciated, even if it's just knowing that I'm stuck with my situation for the time being.

BR

[MelanieGiles]

Hi there and a very warm welcome to the forum. We are glad that you find it helpful and now have something to specifically post.

In agreeing to move to a lower paid job, you are effectively reducing the return available to your creditors on a voluntary basis, however if it is too stressful to stay in your current position then creditors may be sympathetic.

A lump sum offer from a family member may be a sensible alternative, but £10k is rather low when your future payments would equate to almost £19k.

Did your partner agree to the RX1 form - and wer you living together at the time of entering into your IVA? Is there any equity in this property?

[outofit]

Hi Melanie

Thank you for your reply.

My partner unwillingly signed the RX1 form after receiving a letter from the IP saying if she didn't she could lose it due to myself being declared bankrupt. I had to asssure her that it would have no effect on her as I would just have to pay a further years contributions rather than have to release equity (which is what my IP told me)

We were seperated at the time of the IVA and there was a lot of discussions with my IP regarding the property. She had this property for 7 years prior to me knowing her and I was put on the mortgage to extend it. I only lived in the house and contributed to the mortgage for about 4 years and when we seperated I it was amicable and I did say I don't lay claim to any part of the house. I expect there will be equity in that property now but wouldn't have a clue as to how much.

Your help is much appreciated.

BR

[MelanieGiles]

It does rather seem that your partner was unecessarily railroaded into signing a restriction against her property, in which you may have had little beneficial interest. Of course I do not have all of the facts to hand, so she may need to take legal advise as to her position if the equity in the property is ever questioned. If the intention is for you to just pay a further year's contributions, then this may be of no issue, but if you are going to offer a full and final settlement your IP will need to deal with this as part of the offer.

I would discuss this with them further to see how they would intend to present your position, if you do decide to go ahead. They are best placed to advise you with their detailed knowledge of your circumstances.

[plasticdaft]

Do you have anything in writing from your IP stating that no equity is to be released and a further 12 months contributions will be required?

Did your partner understand what they were signing when they filled in the RX1?

Paul