Another issue that i dont understand. I am in my last year of iva 13 months to go and i acquired a property in my iva (as i lived withmy parents when it was approved). Now they have told me in year 5 i have to have a valuation on my property to see if there is any equity in my property. Now its in my partners name also so she owns half AND HAS NO LINK TO IVA.
I keep getting told diff stories about the equity they say if the equity is less than 5% it will be divided with my partner then i will have 2 and half % and i wont have to pay any extra but if its over 5% ill have to try to remorgage or pay extra payments.
Its such a grey area were do i stand with this please.
If the property was purchased after the IVA was accepted, the equity release provision is unlikely to affix to it. Ask your IP to specifically confirm why they feel that the equity in your current property has now become an asset of the IVA.
Thank you for your reply below i have read my propsal on the following issues and i wondered if this covers the property part i mentioned
any property that i aquire after the iva date of approval of the arrangement and before the conclustion of the arrangement will be made available to the joint supervisor for the general purposes of the arragement insofar as the same could be claimed by a trustee in bankruptcy pursuant to the supervisor of sections 307-309 of the act. I undertake within seven days of any such property devoling upon me to give notice of the same to the joint supervisors and to co-operate with them fully as regard to the realisation of the same. This is subject to proviso that any such after-acquired property will only be sold or otherwise realised to the extent necessary to pay all creditors claimsin full together with interest at 8% per annum simple. Until sale or realisation such property will be held by me upon the trust declared by condition 33 of the standard conditions which apply to this proposal.
I lived with my parents at the time and they downsized and there was no room for me. At the time the current wife did not know about the iva and she wanted a property as i had no were to live. My Partner had the depoist saved in her bank as i was not allowed/able to get any extra credit.
So are the iva company right to demand any equity in my property Melanie.
Technically they could, but if your wife paid the deposit that would have to be taken into account out of any equity division first. Can you tell me how much equity there is in your property and how much was the deposit paid by your wife.
