Iva-help can they take my sons money too?

upavon1

Hi - any help would be really appreciated right now. I am a bit in limbo as my husband (we got married last month) is going through the process of getting an IVA. I have always been aware he has been in financial difficulties and in our 6 years together have taken several of his debts off him by transferring them onto credit cards in my name and taking an unsecured loan out. I am in debt now to the tune of around £30k but this is getting paid off regularly and will hopefully be fine. The 25k loan I took out to give him should be paid off in 7 years. Anyway now we are married he says he wants to put my name on the deeds of the house so should anything happen they can't take all of the house(we previously looked into getting my name onto the mortgage before we wed and they wanted to charge me stamp duty so that was obviously a no go as we didn't have the money!). I am just after a bit of advice is it easy to put my name on the deeds and does this mean that they could not take my "half" of the house should it come to it? Also I have put away all my sons child allowance and christmas money etc to the tune of £2k and this is in his child account (he will be 2 next week) can his money (and indeed any money I have - like my monthly wages) be taken into account for the IVA as all the debts are in my husbands name and existed previous to our marriage? I know I have prattled on a bit but I don't know where else to ask as when I talk about it I get upset so don't feel able to ring a debt counsellor so wanted to pick everyones brain on here. Thanks to anyone who can just clear up about the deeds bit and whether my sons/my money will now be taken into account. Thank you so much.

Penelope_Penguin

I don't think your son's money is at risk, but I'm very concerned about your partner giving away half of his house to you. If he does this whilst knowing that he is insolvent, this transaction may well be reversed once he files for bankruptcy.

Have you taken professional advice on this matter?

upavon1

Hi, thank you for replying. No I haven't taken any advice on as to be honest I am not completely aware of the full amounts/details of whats owed and don't want to add any more pressure on my husbandby asking (yes I know that sounds like a cop out but I know he is doing his best and working all the hours he can). He is not looking to file for bankruptcy but do an IVA but the deed thing is just in case the IVA is not accepted by any creditor for any reason and they go for the house. It was also something we had always said we would do once we got married as it is a natural progression once we had made that commitment to each other. We have already had two of the debts of American Express and MBNA credit cards passed to RMA who left notes for us saying they were going to pay us a visit but the lady who is trying to arrange the IVA for us initially contacted them on our behalf and they didn't come round. Do you think it is worth putting my wages into my sons account for a couple of months because isn't he allowed to get £5k a year in gift money or something (not that I will earn £5k in a couple of months far from it).

FoggyBrain_2

Hi. First of all, your son's money is his and cannot be touched, as long as he is the named account holder ( even if you manage the account for him). House transfer is a different kettle of fish. If there is a loan secured on the house it can still be sold from under you if it ever came to that .... in an IVA it's unlikely to happen -- the idea here is to protect your home. If there is equity you will be asked to try to release some of it towards the end of the IVA.

Your best bet at this stage is for your husband to contact a few IVA companies for specific advice. Have a look at https://www.iva.com for recommended companies. Advice is free and impartial.

FoggyBrain_2

Forgot to add -- if you aren't in the iVA yourself, your money is also your own, but your income will be taken into account to assess your fair share of expenses ( your husband will not be allowed to keep amounts for expenses that you are paying (all or a share of). Paying your salary into your son's account will call into question the validity of that account, best not to do it.

Penelope_Penguin

upavon1 wrote: »

Hi, thank you for replying. No I haven't taken any advice on as to be honest I am not completely aware of the full amounts/details of whats owed and don't want to add any more pressure on my husbandby asking (yes I know that sounds like a cop out but I know he is doing his best and working all the hours he can). He is not looking to file for bankruptcy but do an IVA but the deed thing is just in case the IVA is not accepted by any creditor for any reason and they go for the house.

Sorry, my mistake

My advice stands, though - your husband can't transfer an asset to you to protect it from any inslovency procedure.