on deeds of a flat, how does it affect IVA?

danp100

hi,
i am sure this is a rare situation. I am going on a dmp for a few months whilst we are sorting out an IVA proposal. My dad bought a flat a few years ago which he transferred into my name along with my brother and my sister. So there are three names on the deeds. I have never had anything to do with the flat, never paid in or taken any rent as income. My IP is going to be mentioning this but hopes that we can leave the flat out of the overall proposal for the IVA.
I imagine this is not a common situation, but this really is my main concern. I have no idea if the flat will end up being affected which could cause me a lot of problems. I will just take it as it comes, but any advice is appreciated.
I do at least feel better that i will be making my first dmp payment this week, so things are off and running at last, having missed last months loan repayments
thanks all
dan

Charco_2

VERY grey area!

It's not unreasonable for your IP to try to frame the IVA in those terms (in fact it's clever) but realistically you're going to be relying on your creditors to accept the proposal in those terms and there is no sweetener in there for them to do so!

Legally you have a claim on the property and so you've a claim on the equity (if any exist).

Your concern is obviously whether or not the flat is going to be affected... no-one could know until the creditors meeting!

You're going to put forward the IVA in terms that specifcally mention the flat but wont affect the flat... it's up to your creditors to agree to that or to modify the IVA to change that. However, it is then up to you as to whether you agree to their mods. If the IVA is accepted without affecting the flat then there is nothing to worry about, they can't later change that agreement as long as you stick to what you've agreed.

FoggyBrain_2

As a sweetener you could always work out what your third of any equity might be ( using 85% LTV and a crystal ball ) and offer an extra 12 months to exclude that possible equity from your proposal. Try to get the figure of equity as low as possible, so that the 12 months extra look inviting --- at least the creditors will know they are getting some equity as extra payments, versus the possibility ( real at the moment) of getting no equity at all if it is included

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does that make sense ??? I imagine Charco could explain it better ....please ;0)