IVA, House when divorce 18 June 2022 at 1:51PM in Bankruptcy & living with it 1 reply 151 views

Fairyeggs

My Ex in IVA, 5 years up Oct 2024. I found out she was in IVA after a bill came through which should have been joint but her name removed. Now we still own this property together. Reading up this property would likely have some interest to them. So, after 4.5 years I believe they will ask her to remortage to release small amount of equity. Now surly this can't be done without my input and I would refuse. Am I right to think they will just make her do another year on IVA? As I read the IP can't force a sale.

We are Divorce, no financial order, it explain why Ex left the house and let me move back in with our child 2.5 years ago. I wanted to do the financial but she refuses, now i know why. I did not want to try and force it as house would likely need to be sold, on interest only it very cheap for a 2-bedroom flat. Luckly we are on only interest only last 5-year stop pay back a loan, I will not go back on repayments.

So, I'm asking if I refuse to remorotage at the end of her IVA, what will happen. She 2 years left.

sourcrates

If for any reason a re-mortgage is not possible, then a further period of payments (usually a year, but can be longer) is added to her arrangement.

This is the official take on things -

"You may be unable to re-mortgage or get a secured loan to release equity. In that case your IVA payments will be extended for an additional 12 months instead.

What if the property is in joint names?

One of the rules of debt repayment is that no third party can ever be forced to pay debt which is just in your name. This is the case even if you are married.

As a result of this if you own a property in joint names the other party’s share of any equity is protected. You cannot ever be asked to release more than your share to repay your debts. The amount of any re-mortgage or secured loan you have to take to meet the conditions of your IVA is limited to the value of your share of the equity".