Relationship break while in an iva and have a morgage together

ashp1984

Am I better off asking for 15 k cash and ill write a letter 

ashp1984

An by me offering say 5 k. Surly  that's more than what they would get back through the iva payments. Cause they penny's. Iva company takes it all

sourcrates

If your IVA is a standard arrangement, it will contain a "windfall clause" whereby any lump sums received will have  to be paid into the IVA in full, remember, this is an insolvency, and you have to follow the rules.

This is why I mentioned earlier if you would be better off allowing the IVA to fail, and deal with the fallout at a later date, that way you could keep the money, and possibly use it to part settle your indebtedness.

You can`t just offer a random sum when the IP knows full well you have three times as much in a lump sum, they simply will not entertain it.

ashp1984

So how do I let the iva fail

RAS

Stop paying. Your living costs have increased because of the break up.

ashp1984

Will the iva work with me . And bymy ex partner not signing the rx1 at the start. What do it all mean
 

fatbelly

ashp1984 said:

Will the iva work with me . And bymy ex partner not signing the rx1 at the start. What do it all mean
 

Your insolvency practitioner must follow the terms of the agreement to the letter.

RX1 is the form used to register a restriction at the Land Registry meaning that if you attempt to sell your property then your conveyancing solicitor will be notified that there is an  IVA in place and who the IP is

I suspect that something will show on the title register but you can check for £7 here

https://www.gov.uk/search-property-information-land-registry

Do not use any other link that Google may give you.

sourcrates

I tend to agree with fatbelly that a restriction must have been registered with the land registry, otherwise your IVA may not have gone ahead.

If that is the case and the ex still wants to sell, your IVA must be settled with the proceeds first, which will likely wipe out your equity in the property.

ashp1984

Cause the restriction isn't on the house. What will happen if I sell or have my share of equity  then pay them. Cause surely  me giving them 5k is more than I owe in payments left on iva. 

fatbelly

It will have been a condition of the IVA that a restriction is put on your jointly owned property

If you have checked and there isn't one there, then I am a bit surprised that your IP has allowed this situation to run for over 3 years.

If you manage to sell the property, your conveyancing solicitor fails to check, and the equity is split 50/50, then I imagine your IP would give you the opportunity to settle rather than apply for your bankruptcy.

I don't know where you get the figure of 5k from.

You said earlier that 13k debt went in and you have paid £75 x 40 = £3000. You have probably not finished paying the IP Fees yet