I applied iva with only my name.can she apply bank account to her name only as worried if she will be rejected.as because we are joint in our recent bank and we have overdraft also..i been to the bank and tried to remove my wife in our joint account but they said i cant remove as i need to pay the overdraft so now.dont know as iva wil pay my overdrat.im really confused.thank for all the help
The IVA will be included within your IVA but your wife is still liable for the overdraft and will be expected to pay towards it.
She can apply for a bank account in her own name (Co-op are usually pretty good) but her credit rating will be impacted.
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.
Bob Marley. http://kallis3.blogs.iva.co.uk
As Kallis indicated - however there is nothing to stop the bank approaching your wife for all the money owed on the overdraft (minus any IVA payments.
When you have a joint bank account - you are equally liable for the whole debt. You are however protected by virtue of you IVA - but unfortunately NOT your wife
I'm afraid your wife is jointly and severally responsible for the overdraft. That means the bank can look to her for full repayment and may well do so, so she needs to be prepared to deal with this.
If she does pay it off she can then make a claim in your IVA as a subrogated creditor but as your spouse will probably only be paid if all the other creditors are repaid in full.
Last edited by Lisa Thomas on Tue Aug 02, 2016 9:36 am, edited 1 time in total.
This should have been explained to you at the start and an allowance made for your wife to repay her debts. The bank are within their rights and she needs to repay the debt or her credit file will be adversely affected.
I'd just like to say here that I had 10 credit cards,1 loan in my name only,and 1 joint account jointly with my wife. At no stage after I started my IVA did she ever have her credit file adversely affected because of the joint account. The only thing noted at the time was that she lived at the same address together with two adult children. Never did my IVA or joint account affect anyone else and they all had or applied for credit successfully during my five years IVA.
