can this debt be included in my IVA calculation

[lee_]

some of my debt is a joint bank account overdraft, partly caused by payments to credit cards and catolgue in my name. can this debt be included in my IVA calculation

[MAY2006]

Hi Lee
All unsecured debt must be included in an IVA. One of the first things to do when going down the road to and IVA is open a 'basic' bank account with a bank who you do not owe money to. (watch out for linked companies such as RBS and Natwest)
Transfer payment of your salary and all necessary direct debits for mortgage, rent and utilities to this account.
The reason for doing this is that the bank you owe to will claim any money in it to pay the debt you owe to them first.

[iva_squirrel]

Hello Lee,

You can include your joint overdraft in your iva but the bank would expect your partner to pay the overdraft.

You can include bank overdrafts, personal loans, credit or store cards, outstanding VAT, outstanding inland revenue debts to your iva.

You must however keep up full contractual payments to your Secured debts and other priority debts (see below), an allowance for which will be made in your expenditure.

Debts that cannot be included in an IVA are; Mortgages and loans secured on your property, Hire Purchase agreements (except shortfalls), Magistrates Court Fines, speeding/parking tickets etc, Maintenance/CSA Arrears Arrears on a rental property (however you may be able to include outstanding rent on a previous property).

Kind regards,


Julia



For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[Oliver]

The other experts are quite correct this will have to be included in your IVA. You need to be aware that because this is a joint debt the person that you hold the account with will be jointly and severely liable for the debt. This means that although you will be protected from your creditors by your IVA the person that holds the debt with you will not be. This means that the bank can come after them for payment of the debt and at the very least will pursue them for monthly payment.

Who do you hold the joint debt with? It may be possible for them to propose an IVA also.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
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