Ex's IVA

Sunnylooloo

My ex has entered into an IVA with PayPlan - I suspect he has not been totally honest with them about his earnings but that is nothing I can prove.

My question is, we are finally in the process of sorting out our financial matters and our house is up for sale, so he will probably end up getting a figure of say between 15-20K out of the settlement, is he under any obligation to delcare this to PayPlan?

timberflake

Well my first question would be, is there any reason you need to know? I'm presuming you're no longer together and have gone your seperate ways? Surely his financial affairs are just that and as there is no comeback on you, I'm struggling to work out why you would NEED to know this?

But in answer to your question I would haxard a guess that it would consitute a windfall and he would have to contribute 50%

Charco knows all about this kind of stuff though, where are you Charco!!?

Charco_2

Whoops, late again!

Was there a property mentioned in his IVA? Does he have a claim on the property legally?

The short answer is yes your ex should declare this to his IP... if he had a share in the property when proposing the IVA it would have already been included anyway and the IP will probably be informed of the sale automatically (he would have needed to sign an RX1 form with the land registry)

You say he will receive a figure of £15k or so. Chances are he would have to contribute most or all of this to his IVA but there are ways he can hold some back for himself - for instance does he need to relocate?

End of the day, if he had tried to hide this from the IP then it would come out in the wash anyway and it would be fraud which he could possibly go to jail for - but i sincerely doubt this to be the case!

***as a windfall 100% of the proceeds would need to be contributed, it's 50% for overtime and bonuses***

Sunnylooloo

Thanks - yes he has 50% share in the house although he no longer lives there.

Timberflake my reason for asking is that my ex is asking me to contribute towards his debts (we both have huge debts but his are slightly larger than mine - I am not in an IVA).

Charco he lives in rented accommodation at the moment as is paying rent and nothing towards the house.

I have no knowledge of what he put down in his IVA although more might become clearer once I see his full financial disclosure, I am not convinced that he has been fully truthful in this.

Sunnylooloo

Sorry one other question what happens if he has a DMP and not and IVA would he still have to tell them about the settlement?

Charco_2

No, a DMP is an INFORMAL arrangement. He SHOULD be paying as much as he can afford into his arrangement to try and settle it all as quickly as he can (the quicker it's settled the less interest and charges will accrue)... but there's nothing really to stop him from blowing it all on whatever he likes (He'll just have to deal with all the debts on his own!) His creditors in the DMP will take a dim view of it though and would be very unlikely to freeze interest and charges if they knew about it.

Also if he is in a DMP and wants to spend his £15k then later decides he would like to try an IVA then his creditors would ask some awkward questions about where all the money had gone. If he holds onto the £15k and THEN enters into an IVA he could perhaps look into offering a one off lump sum IVA.

Charco_2

Sunnylooloo wrote: »

Thanks - yes he has 50% share in the house although he no longer lives there.

Timberflake my reason for asking is that my ex is asking me to contribute towards his debts (we both have huge debts but his are slightly larger than mine - I am not in an IVA).

Charco he lives in rented accommodation at the moment as is paying rent and nothing towards the house.

I have no knowledge of what he put down in his IVA although more might become clearer once I see his full financial disclosure, I am not convinced that he has been fully truthful in this.[/QUOTE]

I missed this post last time i looked.

You have no obligation to contribute towards his debts... afterall, as you say, you have debts of your own to look after! You both cut your losses and go your separate ways (DO YOU HAVE ANY JOINT DEBTS? Remember you'd still be liable for a joint debt even if he settled his obligation in an IVA)

You could in fact look into an IVA of your own to deal with all your debts, now that you have a lump sum... I dont know, I'm only throwing an idea out there. Are your debts going to be managable?

Forget about his problems, draw a line under it/him, chalk it down to experience and look after number one!

Sunnylooloo

Thanks Charco, basically depending on various outcomes (at the moment we are in the process of mediation - this is after my ex threatened to take me to court over our financial settlement which would cost more than we would acutally gain out of the house) I have looked into DMP and/or IVA but not really had great advice. It would seem dependent on the outcome of the divorce finances it will be the deciding factor on whether I decide to go BR or not.

Been a long process... (and expensive)

I have spoken to Payplan (who I found not very helpful) and also CAB/National Debthelpline and also CCCS (and I have been lurking round on the BR board too) so I am trying to get as much advice as possible.

At present I am paying smaller payments on all my debts which are working out ok, and I was hoping if I do end up with a lumpsum I can make F&F offers to my creditors.

If however mediation goes belly up and ex decided to carry on with court proceedings then it will be very different.

We have what we call a joint credit card - but in essence it is in my name and he had a named card which we used for joint things when we were together for the house and holidays - he was paying half of this but stopped back in October.

We have two loans on our mortgage account, which will be settled if/when we sell the house.

Sorry bit long winded!!

LL

Charco_2

Longwinded is fine

On what grounds would your ex think you should have to pay towards his debts? What could he possibly say to convince a judge that you somehow owe his debts on top of your own!?

It's worth finding out more about the various solutions so long as no-one tries to force you to commit to anything before you personally feel ready to make a decision... Using your proceeds form the house to settle your outstanding debts is a good idea but try to all your ducks in a line before you pay out the money. It would be much easier in an IVA to have everyone agree to the same settlement rather than chancing your arm with each creditro individually... also if one creditor isn't keen on the idea they may be left with no choice if 75% of the rest of your creditors agree to it.

Sounds like you're having a bit of a hard time of it at the moment and you probably have enough to deal with even without trying to sort out your debts but if you need help and assistance you'll generally find it on here.

Unless there's something you can think of for why you ex thinks he has grounds to make you pay for his debts then ignore him... let him take you to court but insist the loser pays the costs!

Sunnylooloo

Our marriage was considered "long" and we have no children therefore he feels it should be a 50/50 split on all assets and debts. Not sure how far this would get in court or not.

I have spoken with PayPlan about an IVA but after my statement of affairs they said I had something like over £450 left a month which is far from the truth - they wouldn't take in account things like my pet insurances (3 cats and 1 dog) and they questioned my diesel money, basically everthing I had added on my SOA they put down and there was no way I was going to commit myself to an IVA that in a few months I would not be able to cope with.

I have also spoken with CAB and National Debthelpline and taken advice on BR.

At the moment I am making reduced payments to my creditors for the short term and I can manage that.

If the ex and I can come to a reasonable solution I am hoping I will get myself out of this mess, otherwise if it goes to court the court costs alone will cripple me and I will be stuffed!

Charco_2

But if your EX is in an IVA already then it doesn't matter if you contribute or not... why woud he care if Lloyds get 25p in every £ he owed or 28p in every £?
His IVA will last five years regardless and anything outstanding will be written off!

He should be looking to offer MORE of the settlemet to you in the hopes that you would be generous enough to slip some of it back to him under the table! But I wouldn't condone that kind of thing - fraud is fraud after all (his fraud)!

If his IVA is not affordable then he should speak to his IP about about having his repayments reduced - I'm sure i could bring his monthly contributions down by a few bob or two even with just a glimpse of his I&E (and as for your £450... do you have acopy of the I&E you did with PreyPlan?)