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Wife refuses to sign rx1

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Hi, I have been in an IVA since September 2006, due to a dip in wages in 2009 I could not afford mp, so a variation meeting was held, I reduced mp and increased term to six years. When I took IVA out my property was valued at £192k with a mortgage of £170k, the IP worked out a payment of £7954 in lieu of equity, since then the house value has dropped to £175k. I am now in my final year of IVA but a bit worried about what is going to happen as I am unable to pay £7954 as no equity. Can you please advice what my options are, spoke with IP and they said see what the situation is in June and see what money can get hold of then. I am worried as I have spent last 5years battling away and I don't want IVA to fail

One other problem is it is a joint mortgage and my ex-wife is refusing to sign rx1 form to register with land registry. This is a condition of the IVA and they could fail it on that basis. I have negative equity of £5K according to a reviewed valuation I received today. So worried about this whole situation feel like last 5years could be wasted

Comments

  • themull1
    themull1 Posts: 4,299 Forumite
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    my friend is in the same boat, he was told if he had negative equity he could have the iva extended instead.
  • FoggyBrain_2
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    Many older ( pre-protocol) proposals included specific sums to be dealt with by way of equity. At the time the sums were specified to protect the debtor, as property prices and therefore equity was racing ahead and IP's sought to limit the debtors liability. However, everything changed when the bubble deflated ( luckily it hasn't burst) and many, who had equity then, which is written in to their proposals, are no longer in that happy state.

    Swing forward to the present day. Most proposals these days are protocol compliant, in which equity is dealt with differently. Creditors now accept that specifying sums is a dangerous game and, generally, do not define the actual amount. They also recognise that it is currently almost impossible to release the equity, if there is any, and so build in a 12 month extension in lieu. Fianlly they also, generally, include a deminimis of £5000. So if equity is less than £5k it is ignored and the IVA ends as originally planned.

    These days, IP's dealing with older proposals coming near the end are using different methods of dealing with the problem. The less enlightened (of which there are far too many) are sticking stubbornly to the original terms. Some are proposing a variation to extend the IVA by 12 months irrespective of the equity and the more enlightened ( and helpful) IP's are proposing variations to simply bring the older proposals in line with modern, protocol compliant, proposals. Most of these variations seem to be acceptable to creditors at the moment.

    One company has associated itself with a finance company which offers a high interest, short term loan to satisfy the IVA, which they say can be renegotiated into a standard re-mortgage post IVA. I don't believe this approach is popular with the clients (debtors).

    Which firm are you with?
  • JCmobile
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    I am with debt lifeboat. Think the equity thing will be okay Reading into forums, however, it's the rx1 situation that is concerning me, getting feeling that they may fail iva because ex wife refuses to sign.

    My IP seems to think there is a problem, if went to creditors meeting then they may fail IVA due to breach of conditions. I have done everything they have asked, it is my ex that is causing the problem.

    I myself don't understand, if property is negative equity they won't get anything from it and logic would say either I find some sort of lump sum and offer a final settlement or extend arrangement for further 12 months. In either case the equity clause would be removed and rx1 then becomes errelevent.
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