Questions

[jayrob]

Hi
Posted a while a go and now have a couple of questions regarding IVA.
1) as its just my husband that wants to do iva, when the expenditure is taken into account will the bills in my name be taken into account as obviously I will still have to pay my bills. I don't have hardly any if any surplus income as I only receive child benefit and family tax credit, but have myself credit card and catalogue bills, and my husband pays for most of the utility bills.

2) we are renting this house from a landlord being a trust (robs father and uncle are trustees. That one day will hand the house to my husband as it was his deceased mum's wishes. If this were to happen during the term of the iva ( if accepted) what would happen. Would the creditors want a full and final and if so how would my husband go about getting the money as he would be in IVA and not allowed to get further credit and there would be no mortgage on the house.
Thankyou for your time
jayne

[MelanieGiles]

Hi there

You will be required to pay your own bills from your own share of the disposable income, after paying a proportionate share of the joint household bills. And your child benefit and tax credit will be allocated equally against you.

With regard to your property, if this were to be handed to your husband during the term of the IVA, then it would form a windfall to be handed over to the Supervisor for the benefit of creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jayrob]

So what would happen, does that mean he would lose the house or would it be a full and final settlement he owes approximately 58,000 and the house is worth approximately 195,000.
Would it be better if he owned the house the house first then did an IVA as I thought the whole pourpose of iva was to protect your house but pay as much of your debts as possible
cheers
jayne

[jayrob]

Sorry another question, what if the trust decided to hand it to me
and not my husband as it is their choice who the house belongs to or what if they don'e hand it over and we continue to pay rent.
cheers
jayne

[MelanieGiles]

It would mean that he would need to use the asset to pay off his debts - this could be done by taking a mortgage over the property. If he owns the house initially, then he does not need an IVA as he would be able to pay his debts in full. The whole idea of an IVA is to repay your debts to the best of your ability, and not hide assets from your creditors.

If the trust decided to hand the property to you, then that is a decision for the trust, but this would need to be disclosed to your husband's creditors who may take a dim view of the transaction. And a trustee in bankruptcy would look very closely at that, and almost certainly claim that your husband had some from of interest in the property.

If they don't hand it over and you continue to pay rent, then it is simply not an asset.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jayrob]

Thanks for your quick reply I will tell rob, you just frightened me I thought we would lose the house and that is the last thing we want. we are really struggling at the moment and IVA seems the only way forward. If I am understanding correctly then if accepted we would pay each month and if or when the house became robs then we could mortgage and pay off the remainder left oweing which is what we want to do pay as much as we can. Can you mortgage even when you are in an iva?
Sorry to go on but with 4 kids the house is the most imprtant thing to us.

[jayrob]

So what would happen, does that mean he would lose the house or would it be a full and final settlement he owes approximately 58,000 and the house is worth approximately 195,000.
Would it be better if he owned the house the house first then did an IVA as I thought the whole pourpose of iva was to protect your house but pay as much of your debts as possible
cheers
jayne

[MelanieGiles]

Yes - it is quite a simple process to find a mortgage whilst you are in an IVA - the brokers who post regularly on the site are better placed than I to advise on that particular point.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp