Interim Charging Order & IVA help please!!!

Munchlet

Hi this is my first post so please forgive me if it's not in the correct place but I'm going out of my mind and could desperately use some advice.

Basically husband has a lot of debt approx £100k from failed business, in the form of overdrafts, loan, credit cards etc (all unsecured). We realised the business was going to fail last year and he decided to pack it in and try to sort out a DMP, unfortunately a month after he did this and found alternative work, I was made redundant and spent 6 months out of working trying to find a new job, meaning we could only make token payments of £1 to creditors (advised to do this by CAB).

I found a new job in September and in November husband secured good employment (last job was self employed) with regular income and good wage. We contacted Grant Thornton to try and sort out an IVA which they are dealing with.

In the meantime they advised us to continue making token payments of £5 a month to all creditors which we are doing, apart from Natwest. They wouldn't accept token payments, instructed solicitors Irwin Mitchell, obtained CCJ for £49,000 and have now applied for Charging Order, hearing in April.

Hubby has spoken to them and explained situation, stated we were not in position to make payments but are now both employed and in process of trying to sort out repayments through IVA but they didn't want to know, said they would continue with the charging order and that was that.

I'm worried sick, the house is in joint names, originally it was my house and I payed the deposit on it and maintained mortgage payments on my own for first couple of years. Then hubby moved in we got married etc and had a baby so I put him on mortgage and he has been making payments since.

I have a couple of questions, can we still proceed with the IVA? and will they get the charging order even though I partly own property and all the debts are in husbands name. Grant Thornton have said they are submitting proposals for the IVA and don't seem unduly concerned about the pending charging order but I'm worried sick that we are going to be homeless.

Sorry to go on and on but wanted to give you the background info.

debtinfo

Hi one question, is there any equity in your property

Munchlet

Hi

Yes there is probably about £35,000.

debtinfo

hi, can your IVA nominee not apply for an Interim Order to protect you from creditors before the IVA is approved, make sure you ask them.

Munchlet

Thanks for that very useful peace of info, I'd never heard of that. The fact is the interim order has arrived in the post this morning and I've gone into complete panic mode and with it being the weekend we can't speak to anyone at Grant Thornton, but we will phone 1st thing Monday and ask them.

thechippy

Don't panick too much.
Even IF the co becomes final, the chances of a judge allowing a forced sale is probably nil. They won't get a bean unless you sell and then it's only your oh's interest in the property, 50% of the equity.
Even if you wanted to sell, as the debt is oh's but property is joint, the co only carries the same weight as a restriction. Basically, your solicitor is only obliged to inform the creditor of the pending sale 14 days b4 completion. This is not enough time for them to get wheels in motion to make a claim. House is sold, you have all the proceeds and at the point of sale the co drops away........:D

Munchlet

Thanks Guys, I feel much better for coming on the site, should have done it months ago.

thechippy

Munchlet wrote: »

Thanks Guys, I feel much better for coming on the site, should have done it months ago.

..........:beer:

Radiantsoul

The interim order will prevent the Charging Order. So on the basis you ought to be fine. However I have a slight point of concern in that it seems that you have a creditor who might not support the IVA,it seems they might prefer a charging order to the IVA. It seems they are probably a big enough creditor to scupper the proposal.

Good luck!

Munchlet

Thanks for you comments, I have to say Natwest are a big concern to me too. The ironic thing is we get a letter saying that they are going for a charging order and then a letter from their Solicitors saying it's not too late to sort out a repayment plan blah blah. Yet whenever my O/H has rung them to try and sort things out and offered token payments until we get the IVA in place they don't want to know and say Natwest's policy is to proceed and get a charging order.

Obviously we are not able to offer them anymore than token payments at the moment as Grant Thornton have said you cannot offer any creditor more than others they all have to be treated the same.


Does anyone know what Natwest are like when it comes to IVA's anyone any experience?

We have about £750 disposable income a month now and have said that we would look to release my hubbys share of equity in the house at the end of the IVA so surely that would be a better bet for them as they will get the IVA repayments and a percentage of the equity as well, any ideas???

I'm starting to think the bankruptcy route may be better, although we have some equity my MIL & FIL say that they could raise cash to buy hubbys share, does anyone know whether the IP's are fairly flexible on allowing you to buy out other halfs share and keept the house?

Sorry so many questions, I'm just new to all this and trying to prepare myself for all possible outcomes!

thanks:(

debtinfo

Hi, yes the common practice is to offer the equity back to the bankrupt first. It is only if an agreement could not be reached that they would go for a sale.