A bit of an awkward situation has arisen. My wife has just commenced divorce proceedings and will be looking for money out of my house.
Our joint IVA started in 2005 and I have since paid £296 per month into it, 48 x 296 = 14208, leaving 12 payments totaling 3552
In addition to this when the agreement was made an extra 12 payments of £296 was agreed to purchase the equity in the house, another £3552. The house was listed in the IVA agreement under Excluded Assests.
Total Payments (72 months) = 21312
Payments made (48) = 14208
Outstanding = 7104
I will now more than likely to be forced to sell the house to give her her "share".
Current Value (approx) 135000
Co-Ownership Equity = 67500
Mortgage Outstanding = 35000
Fee Etc = 2000
My Equity = 30500
Wil the Credtiots be looking for all of this money, since the original debt was approx £51K, or as the house was excluded from the original proposal would they accept say £8000 as a full and final settlement.
As the property was excluded there is nothing to stop you offering a lower figure. However, if you go ahead and sell before you have the agreement of creditors the money could be treated as a windfall and be captured by the IVA. Speak to your IP and have the variation proposed which once accepted would leave you in a much better situation.
Michael Peoples wrote:
As the property was excluded there is nothing to stop you offering a lower figure. However, if you go ahead and sell before you have the agreement of creditors the money could be treated as a windfall and be captured by the IVA. Speak to your IP and have the variation proposed which once accepted would leave you in a much better situation.
I couldn't agree more. It is so important to disclose all of this information to your IP and make the offer before doing anything. Noting your remaining contributions and your payment record to date, I would say that you would be in a strong position, especially if you justify why you need the remaining equity.
It seems to me that the house was expressly excluded from the IVA, by the fact that you offered 12 additional payments in lieu of the equity. But do check with your own IP to be sure.
