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Can they force Bankruptcy if house isn't sold?

edited 30 November -1 at 1:00AM in IVA & DRO
2 replies 994 views
bantams1969bantams1969 Forumite
1 posts
edited 30 November -1 at 1:00AM in IVA & DRO
Hi

My Wife and I entered an IVA via Clearstart in June 07 both paying £245 a month.

We decided to split up in November 07 and my wife moved out to her new boyfriends shortly after,

we have a 3 year old daughter together, who now resides with my wife and I have contact every weekend.

now because the mortgage is in joint names, we both pay 50% of the mortgage. Well, I pay 100% of the mortgage, but class 50% of the Mortgage as being my contribution child Maintenance (makes it easier than me paying Wife £331 and then Wife paying me back £331).

now I am just about managing to keep up will all payments, bills etc.

however, my wife is struggling to meet her IVA payment and Debt Free Direct had agreed that my wife could have a payment holiday until the house is sold.

The House has been on the market since January 2008 - 3 viewings no interest!!

My wife has now had a letter from DFD saying that if the house isn't sold by 31/05/2009 then they will class my wifes agreement as having failed and will go down the bankruptcy route.

can they do this?

and if so, what happens to the house, and my own agreement?

Replies

  • peachypricepeachyprice Forumite
    22.3K posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    If her IVA fails, then yes they can advise her creditors to force bankruptcy, however, unless it's in your agreement that in the event of failure bankruptcy fees wil be paid, it's unlikely they will go through with this threat as they stand to get absolutely nothing back.

    Is there any equity in the house? If not, the house will not necessarily be lost in bankruptcy.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • DFD? Debt Free Direct?

    if so I doubt very much they will pay to make your ex BR, and its the IVA company that makes you BR if the IVA fails, not the creditors, but if it is Debt free direct they have a history of threatening anyone with anything they can think of to try make sure the IVA does not fail, they are in it for there cut nothing more, so doubt they will waste £600+legal fees making your ex BR.
    Thats it, i am done, Blind-as-a-Bat has left the forum, for good this time, there is no way I can recover this account, as the password was random, and not recorded, and the email used no longer exits, nor can be recovered to recover the account, goodbye all …………. :(
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