If a debt is in 2 peoples names

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thom

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Post by thom » Sat Mar 29, 2008 8:05 pm
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If a debt is in 2 peoples names, do both people need to be involved in the IVA?
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chris.g

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Post by chris.g » Sat Mar 29, 2008 8:10 pm
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Hiya Thom and welcome.
Are you talking about joint debts? If you are then both are equally liable for the repayment, therefore if only one enters an IVA the other will probably be chased for the outstanding balance.
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aguise

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Post by aguise » Sun Mar 30, 2008 8:58 am
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Hi thom
As chris says if only one enters an iva the other will become liable for the debt.
My husband and i have a couple of joint debts and we did an interlocking iva, they are two seperate but only one proposal, one monthly payment and income and expenditure is worked out jointly.

Ang
Please visit my blog at http://aguise.blogs.iva.co.uk/
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butterflies

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Post by butterflies » Sun Mar 30, 2008 11:07 am
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re the question?

If a debt is in 2 peoples names?

can it work/be possible for one person to be bankrupt and one person to be in an iva?

or do both have to be bankrupt?
Last edited by butterflies on Sun Mar 30, 2008 11:08 am, edited 1 time in total.
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chris.g

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Post by chris.g » Sun Mar 30, 2008 11:16 am
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I'm assuming because the creditors will probably get more return from an IVA that the person in the IVA would pay the lions share. It's definately one for the experts to clarify though.
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MelanieGiles

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Post by MelanieGiles » Sun Mar 30, 2008 2:59 pm
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Yes - there is no problem with one party doing an IVA and the other being bankrupt. I have a number of clients who are in similar situations.
Regards, Melanie Giles, Insolvency Practitioner
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butterflies

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Post by butterflies » Sun Mar 30, 2008 8:01 pm
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How do they work out the ratio then between iva and bankruptcy as i understood you can't favour one creditor to another?
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MelanieGiles

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Post by MelanieGiles » Sun Mar 30, 2008 8:22 pm
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If you mean about a joint debt, this is irrelevant as you will both owe the full amount due to joint and several liability.
Regards, Melanie Giles, Insolvency Practitioner
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