Just beginning to feel better about being made Bankrupt on 28th February, when today my husband received a Notice of Pending Legal Action from one of our Debtors for £14421.91 which is the largest debt. We had our IVA split my husband was to carry on with his debts on a lower monthly payment, and I was to go bankrupt with mine. This Debt was listed in my Bankruptcy as my debt, which Grant Thornton told us it was. The Official receiver has not said anything about it to me not being my debt. This debt was rejected on an original variation meeting when we tried to lower our payments. Now do not no where we stand. Obviously Gratn Thornton have made a mistake, worried this will now get passed back to my husband and the new lower payments will not be accepted. I have emailed Grant Thornton today, but have not had a reply yet. Another sleepless night. Any advice would be great please.
Is this debt in your name only or was it a joint debt? my worry is that if it was a joint debt originally, then as you have gone bankrupt your liability for it is cleared but the whole debt would be passed to your husband now, I am NO expert though
I don't know, I think with a joint debt though, even in bankruptcy only your liability for it can be wiped unless you husband went bankrupt too, then the whole amount would be passed to the remaining party who wasn't BR?, as I said I am no expert and I really don't want to be offering you information that is completely wrong, hopefully some one with more knowledge than me will come along soon to advise xx
Hi floridaholiday
I remember your last post & can totally understand your concerns. I'm not a expert on your situation, but I think you should phone your iva company rather than wait for an email. Maybe even give the OR a call for some advise too, between the two of them I'm sure there will be an answer or be able to help on the matter.
I know it's easy for me to say n hard for you to do, but try & keep positive, your in goods hands on here & others will be along to advise too.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Thanks for your replies. The company in question has already had some money from Grant thornton, as the money we had paid into the joint IVA I was told would be split between my creditors and my husbands. As I See it now there will have to be another creditors meeting as this now makes my husband debts higher.
If it is a joint debt and only one of you has been made Bankrupt then im afraid the whole of that debt then falls to the other party as you were both joinly liable for it.
Hi
If the debt was included in your husbands IVA then they are bound by it and can't chase it. If by mistake it was omitted then they are still bound by your husbands IVA.
Your bankruptcy means that you are no longer liable but the joint party, your husband, will be
He needs to speak with his IP asap
Regards
Thanks Andy, still a bit confussed Sorry! Grant Thornton have obviously made a mistake. When our debts were split my husband had a variation meeting (this debt not included) and it was accepted by all the creditors. If this debt is now got to go back into the IVA does that mean that there will have to be a new meeting. The variation was approved at a remaining 35 payments at £160.00 per month. Now adding another £14400.00 will obvisouly make a big difference to what the creditors will receive. I now fear that this could now be rejected. They have already received around £1,300.00 from Grant Thornton for the money that was already paid into our joint IVA, surley this is not right now as this is favouring one creditor over the others which have not received any payment. Do not mean to go on just want to put my mind at rest.
Thanks
Hi
If the debt was joint it should have been included in full on each of your creditors lists for your individual IVAs.If it was omitted from your husbands then this was a mistake by GT and my understanding is that they will still be bound by your husbands IVA. However as they are such a large creditor a variation meeting will be needed as the dividend will be very low
Hopefully Mel will be along to add her expert view and to clarify
Regards
I was going to say what Andy has put in the first line of his last post....but will still say my experience if thats ok.
My husband and i had joint loan debt of £17k. For the purposes of our IVAs it is included in full in each. It doesn't mean they get two payments from us, but that it shows each of our indebtedness as individuals were anything to happen.
Yours may have been included in that instance, but (hopefully I've interpretted your post properly)...but...as you were declared bankkrupt the creditors would still need to get it from somewhere and as a joint debt your husband is still liable. even if its not part of the IVA it will come under it as I believe we are supposed to declare all debts.
Am sure a direct call will put your mind at rest with this, try not to worry too much
You and your husband can check whether this creditor was included in both your IVAs by checking the proposals? That will at least clarify whether a variation is needed for your husband.
The bankruptcy would only address your liability for joint debts and your husband will now be solely responsible for the outstanding balances. However, if it is included in his IVA already (dig out the proposal to check) the notice they have sent him is a nonesense. Send it to your IP to deal with.
If the debt has been allocated to the wrong estate, GT will need to investigate who actually is liable for the debt by requesting copies of the initial account opening paperwork from the creditor concerned. If your husband is actually liable, then it will be fairly simple for them to include this back into his IVA - especially if there was a an error at their end.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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