IVA and Equity questions...

Lilyfairy

Good morning,

For those that may not have read some of my previous posts, I have now been deliberating which debt management route to go down for some time now and have found it very difficult to make a solid decision. Having sought advice from the CAB, CCCS and by asking questions on this forum, I decided to opt for a DMP with CCCS despite my concerns that 30k of unsecured debt would take around 18yrs to pay (based on my embarrassing surplus of £144). As I was filling in the forms, I thought I'd just contact one more company (Payplan) to get another opinion before I committed.

Now, Payplan have told me that I may be able to be considered for an IVA which has thrown me a little because I had stopped considering that option a while ago with a worry of potential equity issues... In short, I'm living at home with my mum at the moment but have a long term partner who I would like to move in with at some point in the near future. He owns his current home outright and would like to release the equity in that, put that down on another house and top up with a smallish mortgage so we can buy a suitable home for us. I cannot put my name on the mortgage due to my situation so that wouldn't be an issue but I could still be viewed as having a 'beneficial interest' in the property if I contributed to the bills for example.

The absolute LAST thing I want to happen is for anyone to be able to claim some of my partner's equity that he's worked so hard for because I have got myself into this mess. Anyway, (I'm getting there now...) I mentioned my concerns to the Payplan representative about this in connection with an IVA and they said that I needn't worry about that as I'm currently living at home. Apparently, if I'm living at home when the contract is drawn up, the wording relating to any possible equity claim will be taken out... Does that sound right? I don't want to doubt what anyone has said but I want to be really sure about this before I even begin to consider it as a real option again.

FoggyBrain_2

It does sound right ... on the face of it. BUT ... during an IVA things change, and so do the terms ! It could be seen as an after acquired asset. However, I doubt that would be the case: If your name isn't on the deeds, or the mortgage and you are not married, as far as yout IP knows you are house sharing and paying your way.

If you are reconsidering the IVA route, might I suggest you pop over to https://www.iva.com and have a word with a couple of the companies there, to get a more balanced view ( different companies work different ways). You need to find a company you feel comfortable working with over the next 5 years. The initial advice is free and without obligation.

Lilyfairy

FoggyBrain wrote: »

It does sound right ... on the face of it. BUT ... during an IVA things change, and so do the terms ! It could be seen as an after acquired asset.

Thanks Foggybrain. This is something that concerns me although, like you say, it could be unlikely. What I find the hardest thing to get my head around are the differences that can be found between company to company when considering IVAs. Maybe ignorantly, I would have thought that the legalities of an agreement like an IVA would have to be standardised across the board but it seems that isn't the case!? I spent about an hour reading different posts on here yesterday and I saw that agreements can include completely different terms and conditions and, in line with what you've also just said, can change at any time! Frightening. Thanks again for your advice, it's very much appreciated. I shall have a look on iva.com as you've suggested.

FoggyBrain_2

Older proposals used to vary wildly (The "I" stands for "Individual" ). They have, to a certain extent, been brought in line with the use of the recent (2008 and 2010) Protocols. However, the way some clauses are treated does still differ from IP to IP. Much depends on interpretation (good old British Law for you) and common sense .... some IP's do seem to lack the latter!