IVA support and discussion thread

emmapieland

Can I just ask, does anybody know whether we could transfer the house into my name and therefore because the IVA is only for my husband, they wouldn't be able to make him release the equity as the house isn't in his name? Clutching at straws, I know.

UpToMyNeckInIt

...very unlikely.

You might be able to if your income alone was sufficient to cover the mortgage, and meet the lender's criteria.

However, this question has been asked before, and I have yet to come across anyone who has successfully done this.

I think this has something to do with the fact that, from your lender's perspective, it provides them with more security if the 2 of you are on the mortgage.

manue1970

Hi

I have been in debt for 15 years and can no longer makepayment so I have decided to do an IVA. I am with NATWEST at the moment andmost of my debt are with them and I understand that I need to close my accountwith them in order to do an IVA. It is fine but the problem is that my accountis link to my Husband business account and he does not know about my debt and Ido not want him to found out as he is completely against credit ect and willkill me if he found out. My question is would NatWest touch his business accountin order to recover the money and do you know a bank that would take me. The 1stone I went for online is First Direct and it says that they do not accept peoplewho did an IVA in the past 6 years or are about to do one? Thanks very much xxx

Find_The_Real

Hello Manue and welcome

If the accounts are linked then there is a possibility that Natwest may off set against your husbands business account or even close the account, especially if you are you named on the account as well. I appreciate you are very reluctant to speak to your husband but if you are considering an IVA and you have joint ownership of any property it is going to have to be discussed with your husband as there may be a release of any equity after 5 years. How much is the debt for?

As soon as you default on any payments, you may not be able to hide this from him if you are financially linked in any way so although it really seems like the impossible thing to do, I would come clean and talk it over with your husband, as many people on here have found out although not the easiest thing to do, hiding it can make it a lot worse. You may be able to then look at your finances jointly in order to cover the contractual repayments and thus not affecting your credit file.

As for bank accounts, the Co-op Cashminder is fine for those in an IVA. Lloyds and HSBC accounts are also rather fussy and don't like people in an IVA. I think Nationwide may also be ok with their basic accounts but you would need to check the T&C's.

manue1970

Hi,
Thanks for your message
I know i should talk to him but he has a very very bad temper. The mortgage and the debts are all in my name and if I do an IVA for 5 years the monthy payment would £283 instead of £1010. I have kept all this for so long that I think I can do it for another 5 years but my only big worry is how do I tell him that I am changing my bank account and also I am really worried that they will take money from the business account or close it (which I did not think they would)...I will phone Natwest today to see what are the possibility for me, Re-mortgage and if this is not possible ask them if I do a IVA will it affect is business account and if so can I unlink myself from it...
Also the company I am going to be using is gregory pennington, have you heard of them?
Thanks for your support
Emmanuelle

UpToMyNeckInIt

Hi Emmanuelle,

Firstly DO NOT switch to First Direct. Once your IVA is up and running they WILL trawl the insolvency register and make you clse your account - I speak from personal experience, and have heard of numeous other IVA customers have the same issue. (Great shame I know, because is is dead easy to set up the account entirely online).

Best avoid Lloyds as well.

Aside from that, you should be OK with an account with any other non-creditor-linked bank.

Personally, if I were at the pre-IVA stage you are at, I would open a full current account (less overdraft of course), as they are far less restrictive than a 'basic' account. Best not mention that you are planning an IVA (there is no requirement to reveal as such).

If they are not one of your creditors, in addition to FTR's shortlist, I would add: Barclays, Santander, Nationwide, Yorkshire Bank.

So then there is the issue of your account being 'linked' (how exactly?) to your husband's Business Account. (Is his a Ltd. Company, Sole Trader, or 'Partnership' Account with you?).

Being self-employed myself (ltd co. account), I might be able to point you in the right direction if you provide a little more detail.

Any 'joint' personal accounts with debts: The bank will pursue your husband for any debts. Before you ask: It is unlikely that you can merely turn a joint account into a sole account, unless you first get it into the black.

If your husband has a separate business account albeit with NatWest, he should be safe. Especially if it is a Ltd. Co. account, because the company is a sepatate legal entity to him (or you) as individuals.

Ultimately, this is something you will have to discuss with your IP - and your Husband for that matter.

There will be no keeping an IVA 'Secret' from your Husband I'm afraid. All sorts of stuff, not least the RX1 Form (if you are a homeowner), will need his signature.

Hope you sort something out soon.

Good luck.

manue1970

HI,

My husband business account is for a LIMITED company and I do not know in which way I am linked to it. I know that when I go on my natwest Online banking I have access to his personal accounts but we do not have a "joint account"

Why would the RX1 Form needs to have his signature if he is not on the Mortgage?

I was thinking of going with Santender and since you mentionned it I will

Thanks again for you reply xx Emmmanuelle

UpToMyNeckInIt

OK, if you have no joint accounts, you SHOULD be OK, but please discuss this aspect thoroughly with your IP to be sure. Sounds like you merely have some shared internet banking login or something.

As I said previously, the LTD. CO. is legally separate from the individual, so no worries on that front either. (Case in point, I have my Business account with HSBC, who as I explained previously, turfed me out of my 'First Direct' Account. They have however, kept my business account up and running - and I even have a credit card with it. That is despite HSBC being notoriously hostile towards IVA customers).

Apologies: I made the assumption that the mortgage would be in joint names. If it is in your name only, then I think I am correct in saying that only you need get involved with the RX1 thing.

A point to bear in mind: I don't know how much equity you have, or how much your mortgage is for in relation to multiples of your income, but it may be helpful to include your husband on the mortgage. This is because, come the time when you have to attempt equity release - up to 85%LTV, the amount at risk is halved, because your other half's share is protected, as he is not in the IVA.

I would be wary of doing the above though if adding your husbands income to yours suddenly enables you to qualify for some naff sub-prime remortgage/secured loan, which you would not be eligible for, taking just your income into account.

Not wanting to pry into your personal circumstances, but I am sorry that you feel you cannot 'trust' your husband, or worried he will get angry etc. However, an IVA is not an easy process to hide, and you may find that not being able to confide in anyone difficult. I would therefore urge you to be upfront and honest with him.

Hope you sort yourself out soon.

emmapieland

Sorry for posting here again when I feel like the thread has kind of moved on, but I have one more question that I would like help with please.

Just an update, my husband is close to signing for an IVA, the debts are all his but we have a joint mortgage on our home.

I currently work 3 days a week as I lkook after my 2 year old son on the other days. In 3 years' time, when he goes toi school, I will probably go up to full time, meaning my salary would increase by approx £10,000 a year.

I am in debt myself to the tune of approx £6000 and plan on paying this off when I do go full time. Does anybody know if I would be allowed to use my money in this way, or would they take my wage increase into account and expect me to pay a bigger share of the household bills and so free up some of my husband's money to pay for his debts?

Thank you in advance

UpToMyNeckInIt

...no need to apologise, this support thread is there to discuss anything and everything about IVA's.

Yours is a very common question.

As only your husband is in the IVA, only his income increases significantly affects his payment.

However, his IP will probably review the total household income periodically (usually at the annual review) to ensure that you are paying a fair contribution towards the household bills (proportionate to both of your net incomes).

Your husband should really run this question past his IP, with the exact salary figures, to get an approximation as to how this will affect things.