Help Please...ex applying for IVA, how am I affected

Debtfree_Diva

Sorry if this is a bit long winded, but I really could do with some advice from any of you that are in the know:

My partner and I recently split up and he has stayed on in the house that we bought together 2 yrs ago with an interest only mortgage (due for renewal Dec 09). Now, because he has very substantial debts he has approached PayPlan for an IVA which they are doing for him. However, he has told them that I am not contributing to the mortgage which is untrue as I am paying my half. As far as the ex is concerned, I can stop the payments (£500) and he will carry on making them by himself but I am not happy about this as I am unsure of what the longer term consequences may be for me if this becomes the official line i.e.

Will there be some sort of a note on my credit file to the effect that I have reneged on the mortgage?

What would happen if he defaulted on the IVA...could the creditors have access to my half of the house?

And what if he died...would I have lost all rights to the property?

When it comes to renewing the mortgage, what chance have we got if one partner has an IVA and the other has allegedly gone awol?

Unfortunately, with the housing market as it is, selling is not an option but I really want to hang on to the house anyway as I believe that long term it will be a good form of security for me (I have no pension) and I was hoping to maybe buy him out one day as he has another (rented out) property.

We currently have a joint bank account but he is trying to open a new one before that one is closed. I am also still paying the Water bill, but all other household bills are paid by him even where the utilities are in my name. I retained my own bank account.

I know I should get some legal advice on this but to be honest my finances are pretty dire too, (but I'm trying to get a 2nd job!)

Any help greatly appreciated.

Thank you

poppy_f1

bumping this for you, cant really help but you need to get it sorted

RAS

Hi

In your situation spending £50 on some legal advice will be the best bargain you ever made. A lot may depend on the legal details of the house purchase arrnagment between you and OH.

I would strongly suggest that you also ring one of the debt charities yourself. If you do not want to speak to Payplan then have a word with NDL.

if you are have joint accounts than he can renege on any of them and the whole debt falls to you. So you need your name off any household accounts he is paying and to insist as of NOW that the bank require two signatures for any further withdrawals from the joint bank account. They will not take you name off it unless it is in credit and they have signed approal from both of you.

having joint accounts with him will damage your credit rating.

And seriously consider making full use of this site to help sort out your own finances - it is a wonder what can be done when a few people put their minds to your benefit.

Debtfree_Diva

Thank you for your advice. I will see the solicitors that handled the conveyancing for the house to see if they can offer any advice and I will make sure that the joint account is closed asap.

Phoning NDL is a really good idea and I will do so first thing tomorrow.

Many thanks.

happyinflorida

Who have you been paying your half of the mortgage to? I hope it's been directly to the mortgage company that you've got your mortgage with and not to your ex?
If he's applying for an IVA this could be a real problem for you as it effects the equity in the property and as you jointly own that, then yes, you could be effected.
Definitely contact your conveyancing solicitor for some advice.

tallyhoh

Your name is on the utilities:eek: . Please write to them immediately & tell them you no longer live there.

And close that joint account ASAP & anything else you have jointly.

Don't leave anything to chance, especially, (cough) where ex partners are concerned.

Call me a cynic if you will but you need to look after yourself.

Good Luck X

Debtfree_Diva

Thanks for the replies.

I have been paying my portion of the mortgage into the joint account (I keep an eye on the account though) and the debit order comes out of that. I'm wondering if paying what amounts to 50% of the interest only payment directly to the bank, on top of the 100% that ex plans to pay, will solve the problem? At least by doing that I am seen to be keeping to the agreement without affecting his income and scupering his IVA. And the capital will be reducing. Still leaves the problem of my portion of the equity being affected though....

I will be contacting the utilities companies asap, and cancelling the phone/bb which is in my name.

Update for Ras: I have emailed NDL and tried to phone them but lines always busy. Will keep trying.

Thanks everyone, I feel much better for this.

x