An IVA is an agreement set up with unique terms and conditions for the individual who takes it out. As you state, it is likely that you will not be able to sell your properties without the consent of your IVA provider. However as your wife jointly owns the properties but is not subject to an IVA she is not prevented from selling them. If she was to sell them, any funds remaining once the mortgages have been paid off will be split between the two of you. You are then responsible for informing your IVA provider of the situation and any funds you have received.
If you can no longer afford your IVA payments now your household income has reduced then you need to inform your IVA provider who will assess whether the payments can be reduced and can renegotiate with your creditors. If you will not be able to continue with your IVA then your provider will fail the IVA as a result of non-payment and you will then be able to petition for your own bankruptcy. You cannot go bankrupt until your IVA has been failed. You should speak to a money adviser who will look at the details of your properties and outline the impact that bankruptcy will have.

Q1. Can this be done?
An IVA Proposal always deals with any interest in property. There will be details about the Insolvency Practitioner (IP) registering a restriction on the property at the time the IVA is approved by your creditors and the forms to be signed to agree this and register the restriction with the Land Registry

The Insolvency Practitioner and your creditors will only be interested in your share of the equity within the properties and the restriction provides some protection of the equity, any dealings with the property will be notified to the Supervisor.

If you or any other party wish to sell a property that is subject to a restriction then your IVA Supervisor may object or need to give permission.

Without knowing in greater detail then it is difficult to define exactly what will happen in your circumstances. It may be that your share of the equity settles your IVA or it could be that loss of income from these properties would result in a drop in your contribution and your IVA could fail. You will need to speak to your IP about this and they will be able to give you information that is specific to your situation.

Q2. What effects will this have on my situation as I will not have her monthly contribution and the IVA was only able to go through with her signing to say she contributed?

If you are not able to satisfy the terms of your IVA, or to agree a variation with your creditors, then your IVA may fail. Speak to your IP and they will review your situation and advise of your options in light of the changes.

Q3. Can I be made bankrupt?

The bankruptcy process begins with a petition to the court for a bankruptcy order. There are only three parties who can present this petition.

The first is for you to do it, by petitioning for your own bankruptcy.

The second is by a creditor to who you owe a sum of £750 or more.

Whilst your IVA is in place neither of these are possible.

An IVA is the legally binding alternative to bankruptcy and whilst all conditions of the IVA are being met neither you nor your creditors have the option of just changing your mind and petitioning for bankruptcy instead.

The third party is your Insolvency Practitioner in the event that your IVA has failed.

So if your IVA fails then there is potential that the result is a petition to court by the Insolvency Practitioner.

Q4. Is the best option for me to go bankrupt as I will not benefit anyway.

This question cannot be answered without having all of the information required to evaluate whether bankruptcy is now a better option. Your Supervisor can advise you on this. It would not be possible to petition for bankruptcy until your IVA has been failed by your Supervisor.

Q5. Should I stop paying the IVA so they make me bankrupt?

This would not be a good choice at this stage. It would be far better to discuss bankruptcy and any implications it may have for you before stopping payments. You may find that that your IVA can be maintained by way of a variation meeting and that bankruptcy is not necessary. It may be that bankruptcy is now a good option for you and that it will fully resolve your problem without any consequence that concerns you. Your Insolvency Practitioner will be able to explain this in detail and assist you in making the right choice.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA or need further help with your IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you and on whether you qualify. Click here to find out more.