DRO partner has a mortgage

RAS

We've seen IVAs for less but if you did not have any beneficial interest in the house, a lot of people would suggest that with fees in the 5-9k range, your creditors would get very little back. I doubt any would receive anything in the first two years.

IVA budgets are tight and inflexible. Basically, you'll have more to live on and your creditors will get more money.

They can ask for a statement of affairs, they can ask for details of your bank accounts but you do not have to provide them. So it's less intrusive. 

What is really important is that your partner is on board. You do realise that even if your name isn't on the deeds, you may well have rights if the relationship broke down, certainly after 5 years. 

But your partner needs to understand that in order for you to clear this debt, his lifestyle may take a knocking. You can't afford expensive holidays, weekends away, meals out.  Or new furniture etc.

How have you accrued this debt? Having separate finances is fine but if you are trying to contribute more than you can afford, you both need to talk about it. 

Start by doing both a joint and a personal SOA, the former with your partner. Then work out what that allows you to pay towards your debt.

Open a savings account, perhaps an ISA with a short notice period, rather than instant access, to encourage yourself to live within your budget over the next few months. That will enable you to develop an emergency fund because you won't have credit to fall back on. 

Also get separate bank account into which money for stuff like clothing, holidays, celebrations, presents, medical and dental goes each month. 

mollymoomoocow

I’m just wondering if it is still worth pushing for a DRO and if rejected then DMP or if I would just be wasting everyone’s time? 

Brie

mollymoomoocow said:

I’m just wondering if it is still worth pushing for a DRO and if rejected then DMP or if I would just be wasting everyone’s time? 

The organisations I know would say you own a house so can't have a DRO.  But there's nothing to lose by asking another agency about this.  StepChange don't do DROs I believe so you might want to try Christians Against Poverty instead.  But any organisation you talk to should review everything about your situation and make appropriate suggestions.    

ManyWays

So you are married, in that case you do have an interest in the property.  
Marriage has little to do with beneficial interest; you may be married and not have any, or not be married and have lots.

He used a payout that he got from the army after being injured for the deposit. I have never paid towards it. 
That suggests you probably don't have any interest

"I do not consider I have acquired an interest in the property which may be claimed by a Trustee in Bankruptcy if I was to be made bankrupt."
And the IVA IP and your creditors were happy with that explanation. The Consent form you have recently signed also supports the statement you have no BI. 

None of this is totally conclusive, but beneficial interest rarely is; so far there is no evidence to suggest that you do have any BI and lots pointing in the other direction.

As @fatbelly says, this isn't a comfortable decision for a DRO adviser to have to take, and you will probably find that no-one will give you a conclusive decision about a DRO while this is all hypothetical, they would rather wait and look at the actual facts when you are on the point of making a DRO application. 

It sounds clear from what you have said that the IVA needs to fail, one year is way too early in the IVA to try to stagger through the rest of the 5 years. MW have said they can't consider the DRO until the IVA has failed, I think you should probably tell your IVA firm you want this to fail.

Then, when that has happened, go back to MW and explain the situation. If they refuse a DRO at that point because of possible beneficial interest, talk to your local Citizens Advice about a DRO.

mollymoomoocow

ManyWays said:

So you are married, in that case you do have an interest in the property.  
Marriage has little to do with beneficial interest; you may be married and not have any, or not be married and have lots.

He used a payout that he got from the army after being injured for the deposit. I have never paid towards it. 
That suggests you probably don't have any interest

"I do not consider I have acquired an interest in the property which may be claimed by a Trustee in Bankruptcy if I was to be made bankrupt."
And the IVA IP and your creditors were happy with that explanation. The Consent form you have recently signed also supports the statement you have no BI. 

None of this is totally conclusive, but beneficial interest rarely is; so far there is no evidence to suggest that you do have any BI and lots pointing in the other direction.

As @fatbelly says, this isn't a comfortable decision for a DRO adviser to have to take, and you will probably find that no-one will give you a conclusive decision about a DRO while this is all hypothetical, they would rather wait and look at the actual facts when you are on the point of making a DRO application. 

It sounds clear from what you have said that the IVA needs to fail, one year is way too early in the IVA to try to stagger through the rest of the 5 years. MW have said they can't consider the DRO until the IVA has failed, I think you should probably tell your IVA firm you want this to fail.

Then, when that has happened, go back to MW and explain the situation. If they refuse a DRO at that point because of possible beneficial interest, talk to your local Citizens Advice about a DRO.

I see what you’re saying however I am now worried that if I let the Iva fail they could make me bankrupt and it could affect my husbands mortgage. I’ve made a royal mess of everything

fatbelly

It's clearer under bankruptcy rules

'interest follows title'

That means if you're not a joint owner on the Land Registry title register, then the Official Receiver doesn't try to realise any interest.

It's very very rare for an IP to seek bankruptcy. Can't say it never happens but I once asked an IP in a large firm and he said 3 or 4 times a year.

Many Ways has set out your situation clearly. There are maybe ten organisations who can do DROs if you want to explore

https://www.gov.uk/guidance/how-to-get-a-debt-relief-order-dro#organisations-who-can-help-you-get-a-dro

mollymoomoocow

Sorry to sound thick but I’m finding while I’m in the Iva agency’s are unwilling to offer me any advice (understandably) Does this mean on the off chance they did make me bankrupt they couldn’t touch my husbands house? Also if that is the case is bankruptcy potentially something I could look into? 

ManyWays

You dont need to worry about your IVA firm making you bankrupt. This just doesn't happen when some is struggling to make payments. It can happen in rare situations where someone is deliberately refusing to pay a considerable amount money into an IVA eg that they have received in an inheritance.

Yes you can look into bankruptcy if you cannot get a DRO, but your IVA has to fail for that first. A DRO is preferable as it avoinds the bankruptcy fee.

You cant pay the IVA for 4 more years, can you? The sooner this is failed, the sooner you can look at the other options in detail.

fatbelly

If you qualify for a DRO, or even think you do, then that is the thing to explore first. There is no downside, and no cost.

It either works or it doesn't

No need to think further than that at the moment

mollymoomoocow

Thank you everyone from the bottom of my heart. I’ve weighed up my options all night and think I’m going to let my IVA fail and put the money I have been paying into it to one side, then attempt to get a DRO. If that is rejected at least that way I will have a little put aside so I can do a debt management plan or apply for bankruptcy