IVA's and marriage separation where do I stand?

Lisosia

My husband and I both have IVA's and we're currently on the verge of a mutual separation.

I will be staying in the family home with our 2 children and hubby will hopefully find somewhere for himself. Whilst I know I can still continue paying my own IVA, I'm not wholly confident hubby will.

My worry is that some of the debt was held in joint names. My question is if he ceases to pay his own IVA where do I stand in regards to our home? My thinking is that even though I will be paying my IVA, we could be forced to sell as hubby owns half the house!

To pay the IVA's off early (due to end 2016) we'd need around £14k. I'm pretty sure we have around £25-30k equity in the house. However, selling the house is something I would do as a last resort

TIA

rabbit_burrow

Why not remortgage to release some equity and then use it to pay IVA's early?

milliemonster

rabbit_burrow wrote: »

Why not remortgage to release some equity and then use it to pay IVA's early?

You can't in an iva as there will be an RX1 restriction preventing sale and on top of that, the creditors would be entitled to all the equity anyway as it would be classed as a windfall.

Have you spoken to your IP regarding your separation? I assume you have an interlocking iva, it will be easy enough for them to split your Ivas and you will continue to pay yours independently, the joint debts will still be included on both Ivas as you are both jointly and separately liable for them and the equity would be split between you aswell, whether your husband then pays or not is entirely up to him

Lisosia

Milliemonster, we both have separate IVA's, however the joint debts are included on both. We pay 2 separate amounts every month to the IVA company.

If he does stop paying his IVA can they still chase for sale of the house, to release equity? with certain debts being joint.

I haven't spoken to our IP yet as I wanted to try gather as much information as possible.

milliemonster

No they can't as he isn't the sole owner, all they could do was ask him to remortgage for his 50% of the equity

Lisosia

milliemonster wrote: »

No they can't as he isn't the sole owner, all they could do was ask him to remortgage for his 50% of the equity

I guess that isn't too bad then, however the likelihood of him being able to raise his 50% with our credit ratings is virtually nil chance!