Separating / Selling House

[Paul G]

Hi all
I am in the 4th year of my IVA, things have gone badly over the last few months. I have contacted my IPA about the possibility of selling the house in a full and final settlement bid. Last week my wife told me she wants a separation.[:(]
We were having more than the usual problems to deal with over the last year or so. She is not on my IVA and has no debts.
I have paid the mortgage solely over the last ten years and it is just my name on the deeds. But as my wife, we were married 15 years ago, she has claim to half of my property. I have no qualms with her claim and will gladly let her have her half of the equity.
Will my creditors see her as joint owner under these circumstances?
I am hoping the my half of the lump sum at the end will be enough for them, or will they ask for some of her share ?
I just want a new start and hope the best for her as well, these debts have been the reason for the end of our marriage and I take full resposibility for that fact. I will miss seeing my son everyday but hopefully will get some quality time with him after the dust has settled.
Cheers all [8)]

[Adam Davies]

Hi paul
Sorry to hear of your separation.
I can't see the creditors having any claim on your wifes share of the equity [50%] and given your situation will expect them to accept your share as full and final, less an amount for you to secure rented accomodation
Good luck
Regards

[MelanieGiles]

Is the house owned by you jointly? And is the mortgage a joint mortgage? Also, although your wife has no debts of her own, would it be fair to say that your debts were incurred to fund items for the household?

[Paul G]

Hi Melanie, as mentioned before , the mortgage is in my name.
My wife has spoken to a solicitor and he confirmed the fact we were married before the house was bought gives her rights to 50% on a seperation. I am not contesting this, with regards the debts being incurred to fund household items ? I am unsure as to where that is leading
Is it possible the creditors would explore that avenue?

[MelanieGiles]

It may well be something that they will want to understand - as perhaps your wife should receive a lower share of the property if she is responsible for or has benefitted from some of your debts.

[Paul G]

Thanks for that insight Melanie , I will bear it in mind.

[Paul G]

My wife has sought legal advice, none of the debts are associated with her, they were pretty much for my own 'misuse'.
We have had the house valued and will be putting it on the market this weekend.
My IPA has asked for the vendors details, o/s mortgage redemption details to calculate the possible equity available after a sale.
He will propose half of the available equity as a F&F for the creditors. My wife is having a seperation agreement drawn up in a few days whereby I agree to her claim on the property.
I am hoping this will be sufficient for the creditors. The amount they will get, even if the house goes for less than asking price ( and it is priced low ) will be more than they would have received if I paid the agreed amount over the next 21 months plus agreed equity release in year 4. I am hoping the worse case scenario is an agreement of half the equity plus a maximum of 1 year's more of payments based on my new circumstances by way of a variation.
I will continue paying into my IVA whilst the house is on the market.

[MelanieGiles]

If your IP is prepared to accept your wife's claim to beneficial interest, and believes that this can be justified to creditors, then this sounds like a workable plan to me.

[Paul G]

Hi again
Well after what seemed an eternal wait, the F&F proposal meeting has been set for August 2nd.
The IP is putting forward a proposal based on the following

1. I have paid 39 installments out of 60

2. I am unable to pay any more due the fact my wife has moved out pending a divorce, my own income has dropped by over 40% since the IVA started ( I was out of work for 4 months from Nov - Mar )

3. My wife has been advised by her solicitor that she is entitled to 50% of the equity remaining after sale/fees etc.

4. They are proposing that the creditors accept 85% of my share, leaving me with enough to relocate.

5. My wife has no debts and is not includined in the IVA.

6. My debts were in no way incurred in a beneficial way to my wife.

As all of my debts are with one creditor, I am hoping they will look on this kindly.
I am hoping this goes through , I have a few offers on the house and would like to move on from this part of my life.
I will need all of my income to help support our son , plus I will need to rent somewhere big enough for his visits.
My wife's solicitors will be happy to contest the outcome if it is not favourable.
I will let you all know how this concludes on Monday.
Any comments or observations are welcome

regards


Paul

[MelanieGiles]

Sounds like a good plan to me and probably worth the wait. Very best of luck for Monday, and make sure you let us know the outcome.

[Paul G]

Thanks Mel .

[Paul G]

Great news , the meeting was held today and the variation was accepted
Now I just have to sell the house

[Pandy]

Congratulations Paul G although I am sorry about your separation.