Help please

[Sylvia]

Please can someone help with this?
My husband, who is self employed has a serious amount of debt. He is reluctant to go down the IVA route and is convinced he can sort the problem out himsef. We lost our family home in the 1980's, again due to his business failing and since then have lived in private rented houses. We are now 6 months behind in the rent and although our landlord has been very patient, our lease will not be renewed later this year.
My mother has offered to buy us a house (mainly for my and our childrens security). The house would be solely in my name, although my husband would be living with me. When/if? he enters into an IVA/bankruptcy agreement, would my new house be used to pay towards his debts? The debts are all in his name apart from our lease agreement on our rented house.
Obviously my mother would be reluctant to buy a home for us, only to have it taken away to pay for his debts.
I am at my wits end and need an answer to this problem. Many thanks in advance.

[Viki.W]

Hey Sylvia, welcome to the forum. You're in a great place for advice and support, an expert will be along shortly to answer your question. I think, if your mother has paid the deposit and the mortgage and deeds are in her name then really you are just tenants and your house will be safe, while you are waiting for an answer here, try posting your question on our sister site, just click on bankruptcy help in the top left hand corner. Good luck, hang in there for an answer. Viki X

[Sylvia]

Thanks for your response Viki. Just to clarify, my mum would buy the house out-right.....no mortgage invovlved. She says that she's giving me my inheritance now so that she can at least see that I am settled and not going to end up homeless.She is reluctant to buy the house in her name as this would involve her paying extra Income Tax. She is 80 years old, and has her financial situation under control, and does not really want all the hassle that might come if the house is bought in her name.

[Viki.W]

Sylvia, just a suggestion and I'm NOT an expert but, with the money that you may get from your Mum (how lovely by the way) you could propose a full and final lump sum IVA to clear your debts or even try and clear them in full (can you post your debt details) and then with any money left over, use that for a deposit for a house, with a good hefty deposit you have every chance of a mortgage even if your credit history is shot. I'm sure an expert will help soon. Viki X

[Sylvia]

Hi Viki, I'm afraid there is no way my mum would actually hand over money to us, because of my husbands past history. But she is prepared to buy a house for me. My husband has had help from family memebers in the past to clear debts, but he does'nt seem to learn. I must point out that these debts are in his name not mine. We lost our home in 1980's due to defaulting on the repayments, so I can never trust him with a mortgage again even if we could get one at our age. Now our rent is 6 months in arrears, so our renting history is bad as well. This is why my mum has made us this offer.

[Sylvia]

Sorry, forgot to post that my husbands debts are over £50k

[Julie]

Hi Sylvia - I think as the IVA will be in his name only and the house will be in yours, the house will be safe. Your assets can't be touched - for example if you both owned a house, only your hubby's share of the equity could be used towards his IVA.

Double check with one of our experts on here - but I'm pretty sure the house will be safe. x

[chardonnay]

Hi Sylvia and Welcome to the site,
I'm sorry to hear about your problems, but as a new member myself I can assure you the guys & girls on here are experienced and will give you lots of help, advice and support. Be patient and very soon answers will start comming for you - they've helped me lots already and I only joined earlier this week.
Chin up you're amongst friends here who will support and guide you through this.
Chardonnay x

[Viki.W]

Right, Sylvia, I'm going to keep taking your post to the top for an expert as, although I think the house will be safe in an IVA, I don't know the ins and outs of beneficial interest with regards to bankruptcy, really need an expert answer on this one.

I also suggest that your husband has a word with an Insolvency Practitioner to go over his options, I know you say that he won't, but maybe you could get him on the forum and he can see for himself that there are lots of people in the same situation, there is a solution for him.

Viki X

[Sylvia]

Thank you all so much for your kind words[:)]
He's already spoken with one Insolvancy Practitioner and he's now saying that he does'nt qualify for an IVA as he's not earning enough. He's a self employed carpenter.
I feel a little better already knowing that I'm not alone. Thank you again !

[Viki.W]

Then maybe bankruptcy would be a better solution for you, and then you could get the house and start afresh. Please wait for the experts to post but also go to the sister site(click on banktuptcy help in top left hand corner), there is a guy called Julian on there who may be able to answer you questions. I wish you all the luck in the world, and please keep posting, we're all here to support you. Viki X

[rockbottom]

HI Sylvia

you are definately not alone and do keep posting as it really does make you feel better, and can i say what a lovely mum you must have, there will be a way forward for you, how long have you got left on your lease, do you think it would be poss to get things wrapped up before you have to move out, that way you would know that when you had your new house it would be safe, im by know means an expert but i think i have read somewhere that if they think you benefited from the debts any equity that you have might be taken into account, no doubt an expert will be along soon for you and hopefully say im wrong.
all the best
rb

[Viki.W]

Hey Sylvia, I've just posted your quesry on the sister site and Julian, an expert on there has replyed. This is what he said:-

"I would not see this as an issue as this is a gift from Mother to Daughter and this gentleman would not be contributing towards the property as it will be unencumbered. I suggest the Daughter seeks legal advice as to making sure her husband has no legal right to the property when it is registered to her"

So, if bankruptcy was the route you choose Sylvia, then the house would be safe as long as you do the above.

Good luck Sylvia, keep posting. Viki X

[Sylvia]

Viki, Thank you again for your help and for cross posting for me[:)]
This advice has made me feel a bit more positive in going ahead with buying a house. I've seen a suitable one in our price range but am still at the negotiation stage. Wish me luck and hopefully it will be a new start for us as a family. Now I just have to persuade my husband to take professional advice and decide on his course of action concerning the debts.

[cfnc]

Goodluck Sylvia,

hope things work out for you and your family

Kirsty