Hi
Can my husband and I have a joint IVA or do they need to be seperate? His debts are around £70,000 and mine are only £7000 but as the only income we have is his I have no way of paying off my debts and he cant pay mine as he can''t even pay his own! Our income is £1500 a month from his 1st job and approx £400 from the 2nd with £150 benefits/tax credits for me. There is a slight possibility he may be made redundant from the 1st job in about 6 months. Our outgoings only leave us with £250 to pay debts with, is this enough for what we owe? Many thanks.
There is no such thing as a joint IVA, but there is a procedure where two individual agreements can be made mutual and self-reliant, and this process is commonly used for husbands and wives, and other relationship partners who have a history of pooling their income and sharing resources.
You are in an unusal situation in that you have debts but no income, and given the fact that your husband's main job may be uncertain, I would hesitate to recommend and IVA to you - although I am sure that others will be along later with a differing opinion. Personally, I would look at a short-term DMP which could include all of your debts on equal terms until the situation is more certain, or even bankrutpcy proceedings if you have no assets or employment which would be affected by this. A direct chat with an insolvency practitioner would appraise you of all options currently available to you, so that you could make an informed choice about the future.
Is there any reason why you have no income of your own?
Thank you for replying. My income is a bit tricky as my youngest boy has only just turned one - literally 7 days ago! I have been doing some hours here and there my old employer but he needs someone full time so has had to take on someone else but is still giving me as much as he can for me to do from home. I'm lucky if I get £150 a month tho since the hours were cut. I have also started to sell Avon in the hope it will give me some extra income but as Im only just building a customer base I am not really making any commission yet. We are in a dm at the minute but the idea of still paying in 20 years horrfies me! Also our creditors are starting to badger us for bigger payments. Do you think bankruptcy woud be good for us? My husband works for the nhs so not sure if it affects his employment? Thanks again for your help. xx
I cannot see why bankruptcy would affect your husband's job, but a key decider on whether this is an appropriate route for you will be to determine whether you have any assets which would be affected. Are you property owners with equity? Do you have a car valued at more than £2,000? Are there any other assets which would be at risk under bankruptcy proceedings?
We are in rented property and our car cost £1000, which my inlaws bought us to help with getting to work and ferrying the kids around. We have no valuble assets as far as I am aware although my Mum is giving us her 42 inch tv as she is getting herself a new one, would this be considered as too much of a luxury? Also, I have read that when you apply for the bankruptcy all accounts are frozen but how would that affect our bank account as we pay our bills and more importantly, our rent through ddm's? Lastly, is the £450 bankruptcy fee upfront, what happens if you dont have that sort of money lying around? Thanks again, I really do appreciate your help. xx
It will cost you £495 for each bankruptcy application, and you cannot proceed without paying that in cash to the Court. If you cannot afford to pay it now, you could save up over the next couple of months, or perhaps your parents could help out.
Bank accounts are temporarily frozen, but that is soon fixed by a quick call from the OR to your bank, and so long as the bank is prepared to allow you to continue to hold an account, there should be very little disturbance.
I would not expect a second hand TV to be grabbed by the Trustee, and your car is of sufficient low value to probably be exempted from the proceedings.
Yes your bank account is frozen but only on a temporary basis whilst the Official Receiver checks the balance. He is basically looking to see if there is a substantial sum of money in the account - he will not be able to touch the monies needed to cover your expenses until your husband's next pay day. Once he is satisfied that you do not have anything over and above that he will give the bank permission to unfreeze your account.
Make sure however that your bank is not also one of the people you owe money to - if it is you will need to change it. Also HBOS have a policy of refusing banking facilities to anyone who becomes bankrupt so if you bank with them you will need to change your account.
Finally yes you do need the £495 up front to petition for your bankruptcy - the courts will only accept cash. In cases of severe hardship you can apply for financial assistance with this fee through either the Citizen's Advice Bureau or National Debtline. I am not sure however if you will qualify as your husband is working.
I would suggest however that you seek full advice before you decide on any route - speak to an Insolvency Practitioner, the initial advice is usually free and without obligation.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
Bankruptcy might be the appropriate solution for you and/or your husband. You should seek free advice from a reputable IP. Visit www.iva.com where you can read reviews on several practitioners and then contact one or two of them. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
