IVA and RX1 form

IVAHELP

Dear all 

I need some advice 
My husband took out an IVA nearly 2 years ago with a known company he is self employed and debts added up to £40,000.
The company are asking us to sign an RX1 agreement stating that we will enter into an agreement and put our house against the debt.
I am being asked to sign even though the debt is in my husbands name we own the house together 
Does anyone have experience of this or any advise? Feeling worries as they have been chasing for 2 years and are saying that if we don't sign the agreement will be revoked.

fatbelly

You are under no obligation to comply with this.

I cannot see why it would be in your interest to do so

IVAHELP

Thank you for your reply,do you have experience in this? I think we need legal advise but not sure where to turn

RAS

Hi, it is "normal" for people undertaking an IVA to be asked to release equity in year 5.
When they have joint ownership/joint mortgage, it is "normal" for the other party to refuse to co-operate.
The debtor then pays into the IVA for another year. But some IVA providers have been telling their clients to sign up for high cost secure loans. Again that would require the other party's consent.

What exactly does his contract say? 

And would failing the IVA by a disaster rather than an expensive mistake (because the providers fees will be paid as a priority rather than the debt)? Who advised him and where did he find out about the option and the company?

fatbelly

I suspect the agreement will say that a restriction is to be lodged with the Land Registry. The fact that this hasn't been done and the IVA hasn't stopped shows how important the IP thinks this is.

Restrictions do not need the consent of both parties but the devil is in the detail of what the restriction, and the agreement, actually says

It will be hard to get 'expert' advice from someone who doesn't have a vested interest in pushing IVAs.

Debt Camel is pretty good on IVAs and I would trust her views, if you could get them

IVAHELP

Thank you so much for your advice 
You are correct it would be a restriction on the house, my husband has been doing the iva for over a year and they keep asking for this document to be signed and returned otherwise all the money he has paid in will be lost and the contract void.
I will get in contact with debt camel.

IVAHELP

RAS said:

Hi, it is "normal" for people undertaking an IVA to be asked to release equity in year 5.
When they have joint ownership/joint mortgage, it is "normal" for the other party to refuse to co-operate.
The debtor then pays into the IVA for another year. But some IVA providers have been telling their clients to sign up for high cost secure loans. Again that would require the other party's consent.

What exactly does his contract say? 

And would failing the IVA by a disaster rather than an expensive mistake (because the providers fees will be paid as a priority rather than the debt)? Who advised him and where did he find out about the option and the company?

Ras thank you for your reply.
He is with creditfix.
They say if he doesn't sign the tx1 the contract will be void.
They have advised he will need to remortgage after 5 years however I am not comfortable signing this form

Grumpelstiltskin

Did your husband not understand that after 5 years he would have to either remortgage or pay an extra year into the IVA?

fatbelly

He should sign, as that is presumably what he agreed to. His agreement is not binding on you.

I would suggest he signs and returns the form. If he actually gets a notice of breach i guess that is the time to take advice on the pros and cons and/or look at a complaint

They should not retain more money than they are due in fees. Having said that, it is quite possible for Creditfix's fees to swallow two years of payments.

I think it's fair to say we are not big fans of IVAs here as we see so many missold.

It could be, at the end of the day that this is a case where it was a suitable strategy.

Homeowner, 40k debt. How much is the monthly payment?

As I said before, the devil is always in the detail.