Is divorce an option for IVA?

upavon1

Hi. My husband is being chased by debtors left right and centre. He is looking at going down the IVA route but is intending to sign over the house into my name (transfer of deeds) before starting the IVA. I am worried that they will come after the house still as they will recognise it as a ploy to save it. Having spoken to my husband we are considering the option of having everything transferred into my name then getting a divorce. The divorce would give me the house and we would get a full and final settlement issued in court meaning that he could no longer be able to come after any more money. Does this sound like it would work? Any feedback would be appreciated (please keep them positive I don't want people to judge us saying that marriage is for life etc. we are well aware of that and it is breaking my heart that we are having to consider this). Thank you.

lisal0u

Hiya,

Im two months into my IVA and Im a homeowner. By taking out an IVA you are protecting your home as long as you keep up payments, the creditors will not be able to come after your house. It is only bankruptcy where you may lose your home.

Lisa

FoggyBrain_2

Hi. In an IVA the house won't be at risk, However, if there is equity it will need to be addressed by either releasing it in year 4 ( impossible at the moment) or adding an extra 12 payments in lieu.

As for the divorce ploy ---- in IVA the creditors might look on this as a ploy and simply reject the IVA. If you do this and decide to go bankrupt the OR and the Courts will take a dim view of any ploy to hide assets ( which is, in reality, what you are doing). In response they can give you a rough ride through bankruptcy as well as reverse the transfers. The OP has big, sharp teeth if needed.

I suggest you pop over to https://www.iva.com and speak to a couple of the firms represented there -- it's free and impartial. Get all the info you can before doing anything drastic.