If a loan is in 2 names

[empatia]

If a loan is in 2 names but only one is covered by an IVA, what is the result of 1)the loan being paid off now, 2)the payments being continued by the 2nd person, does the bank receive funds from the IVA and if so do these continue after the loan term is paid off? Are any "excess payments" refunded?

[scaredkez]

hi and welcome to the forum, if the loan is in joint names and one enters into an iva, the loan company can persue the other person named on the debt for outstanding balance,i am not sure how they offset the payments from the iva, but i am sure they will try and recover the rest of the total amount from the other person less what they receive from the iva, i may be wrong on that score i am sure melanie will be along soon to answer and correct me if i am wrong.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Hi empatia

If the loan is paid off by the other party, then it will be excluded from the dividend payable to creditors within your IVA, and the other creditors will get a higher dividend. If the ongoing loan payments are being paid by the other party, this will reduce the debt over the period of the IVA, and dividends will be calculated on the reducing balance accordingly. There will be no excess funds. When the loan is paid off, it is paid off - therefore no more payments will be necessary.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk