Dispute debts AFTER IVA

[ianmillington]

Hi Eva

It will depend. The debt is probably going to be Joint and Several and so both of you will most likely be liable for 100% of the debt (in law).

I would hope that FD will take into account the amount they will get out of your VA and do a deal on that basis but they don't strictly speaking have to.

The worst case - FD don't do a deal and your husband has to borrow the money to pay off the debt in full. There is an upside, in that because he has fully discharged the debt he will be entitled to claim in your IVA for a proportion of the sum he's paid.

Make sense?

Ian

[no money eva]

I cant say that it does to be honest, Ian.

We didnt want to borrow any more money from anywhere. We were hoping to do a deal for the remainder with Moorcroft, would First Direct make the decision on this ultimately?

[ianmillington]

Sorry I wasn't too clear Eva. On the other hand, it can be a difficult concept to grasp.

Yes FD make the ultimate decision although they may give Moorcroft some discretion.

The best deal you could possibly get is for your husband to have to settle 50% of the debt spread over 60 months. However, in law, they are allowed to claim the whole debt from both of you - it's not 50/50 as a legal principle. They could insist on immediate payment of the whole debt from him. Your IVA won't affect that. On the assumption that your husbands income is taken account of in your IVA I would hope they would be sensible, however.

Having to get a loan was, as I said, the worst case i.e they won't do any sort of deal and demand immediate payment of the whole debt from your husband. In that case your husband has settled both his debt and yours too and can claim in your IVA in place of FD for your share of the debt.

Ian

[no money eva]

thanks Ian. I know its confusing we were going to present them with a 78% return from hubby, as they are getting 22% from me, in essence will be getting 100%. Moorcroft have already frozen interest and agreed to a payment plan with our DMP currently.

Another point while I am on - I am only waiting on Lloyds voting for my IVA as it stands it will go thru. Lloyds hold 40% what is the chance they wont vote?

[ianmillington]

Firstly good luck with FD. I think they'd be a bit unreasonable not to go with your plan but as you will know by now I feel I always need to point out all the pros and cons.

On the Lloyds point - you don't need 75% of your creditors to vote to accept your IVA. You need more than 75% (in value) of those creditors who vote to vote in favour of it. Thus if only 1 creditor votes, and that vote is to accept, it goes through unanimously. So based upon what you say if lloyds don't vote at all your IVA will go through.

Ian

[no money eva]

Thanks for your help Ian.

Ive everything crossed right now with only 1 1/2hr to go....

[ianmillington]

Good luck [:)]

[tigger]

F.A.O Ian Millington

Hi Ian,

I've shamelessly cribbed some of your lines and have drafted the foilowing to Clear Start - will this do? GOOD LUCK EVA! from me as well

Dear Sirs,

RE: Allied International Credit (acting on behalf of NatWest Bank)

Please find recent correspondence regarding the above matter. If you check my file you will note that I had a similar problem with Moorcroft Debt Recovery Ltd this time last year,

Looking at my Chairman’s Report for my annual review, I note that my 100% of my wife’s income is taken into account with regards to determining my monthly IVA payment. Therefore, If AIC press their claim there are no funds available to allow my wife to meet this liability. Of concern to me is that this debt was never highlighted as a priority area of risk for my wife during the initial formulation of my IVA.

However, is it possible for you to approach NatWest to look at the wider picture and acknowledge the reality of the situation i.e. 100% of my wife’s income is taken into account for my IVA and that there are simply no funds available for my wife to service this debt of her own accord? Alternatively, could a variation (if NatWest actively agree) be incorporated into my IVA releasing my wife from the joint and several liability associated with this particular debt – given the fact that this would not affect any of the other creditors? I am also aware that we could contest my wife’s liability with AIC but I am loathe to do this as I do not wish to alienate Natwest as a creditor.

I look forward to your help with this matter as it is causing considerable stress to my wife, who believed that all the “hassle and sleepless nights” had finished months ago!

Yours faithfully

blah blah blah

[ianmillington]

David

Couldn't have said it better myself! Copyright is hereby fully relinquished[:D]

Ian

[tigger]

Hi Ian,

Your help and advice in this matter has been very much appreciated!

kind regards

David

P.S I'll update the outcome of this issue as it does seem to be affecting other members of this forum

[tigger]

Quick update:

Basically given the finger by Clear Start. “Sorry, joint & several debt, your wife will have to sort this out for herself or visit the CAB”. Not particularly surprised as this seems a fairly typical attitude of the larger IVA providers. As much use as a chocolate teapot! [:o)]

Still, I will be taking them to task over why it’s taken them nearly 20 months to point out this risk factor & if my wife has to make extra payments will this be reflected in an adjustment to my monthly IVA contribution (bearing in mind that they take 100% of my wife’s income into account when calculating my monthly IVA payment).

David

[tigger]

CLEAR START ARE FORGIVEN [:D]

If my wife is pressed for payment, Clear Start will call a variation meeting & reduce my monthly IVA contribution accordingly.

David

[ianmillington]

Hopefully that's a result David.

Ian

[tigger]

Hi Ian,

Yep, very full & frank discussion over the phone (they contacted me) . My confidence with them has been restored!

David

[tigger]

Just to add...

Without the help of this forum I wouldn't have been able to argue my case in the first place!!!