If i am the only one in debt

[karon.h]

If i am the only one in debt, is it just my outgoings i calculate as my husband pays the majority of the household bills, or do i need to calculate everything including his income? (He is self-employed and i am full-time employed.] We do have a mortgage and second mortgage together but he has no other debt and feel it would be unfair for him to 'carry the can' for my stupidity. Can you please advise, thanks.

[Cybus]

You have joint secured loans. I would assume that you contribute towards payment of those?

In your income and expenditure, you need to list YOUR own income and all items of expenditure, including contributions to mortgage payment. Your husband's income will not form part of any IVA - if an IVA is what you are considering - as all the unsecured debt is in your sole name

It is more than likely that your creditors are going to consider that you have a share in the property as the mortgage on it is in joint names. This is something you will need advice on from whoever you may choose to consult.



Tell it like it is.

[MelanieGiles]

I don't agree with Cybus, sorry.

When compiling IVAs for one party of a partnership who is insolvent, where the other one is not, you should list both incomes, and the total expenditure. Using the same ratio of your individual earnings to the total earnings, should then be used to calculate the percentage you pay to the overall expenditure, leaving you with an individual disposable income to offer to creditors. And beware that nine times out of ten these days, your creditors will ask for your husband's share of the disposable income as well.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Beechy]

The total household income has to be used (generally)and as Melanie says you can do it on a % basis or straight forward joint income.

Creditors view could be the debt is all yours but there could/may have been benefit to you partner from the debt that you have incured.

Dave Beech

[Skippy]

Has this changed in the last year Melanie? When I went into my IVA only part of Dave's income (equal to the mortgage payment) was included on the income and expenditure and he wasn't asked to contribute.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Adam Davies]

Hi
I think that it has moved Skippy.
I am under he impression that all household income is taken into account and the ratios determined.
It is possible that a couple could use only one persons credit cards but both benefit and I can see why creditors insist on all incomes being declared.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

No - I've been doing it this way for the last 10 years, although until about two years ago creditors did not touch the non-insolvent partner's disposable income.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Skippy]

Would it have made any difference that although Dave and I had been together for 9 years we'd only lived together for 5 months? No point in rushing things is there?!?

I know it doesn't make any difference to me now, but I'm curious!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[ray_a]

If the other partner who isn't insolvent is treated as having to make a contribution then effectively they are being brought into the IVA which is unfair especially if they are not married!

I can't help feeling that one is penalising the one who isn't in trouble and possibly damaging a potential return to creditors!

[MelanieGiles]

There are many oddities about the IVA marketplace at the moment, largely driven by creditors. It is unfair for someone who has not benefitted from the debts to be asked to support, but I rarely find a non-insolvent partner who does not wish to help their partners.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[johnz]

This is why I couldn't do an IVA. Even though my partner knew nothing about my debt and benefited in no way from it, I had to declare exactly how much we both earn and all of our expenditure whether it be joint or not.

The outcome was that proportionatly I pay too much into the household and if I paid less then I would be able to pay my debts without the IVA. Due to this reason, bankruptcy was not an option either. However, as my husband was not willing to subsidise me in this fashion (and quite rightly so), the only other option for me was a debt management program.

No, it's not fair that my husband should be brought into the situation at all. After all, he had nothing to do with it. An analogy I used ages ago was this. If I commit a crime, they wouldn't put my husband in prison just because we're married. I would have to deal with it all myself. And personally I think debt problems should be dealt with on an individual basis as well. But you do have to look at it from both sides. The creditors do have a right to do whatever they can to get their money back. And if that means forcing your partners hand, then that's what they'll do.

Not much help, I know. But better to know where you stand from the offset rather than getting your hopes up, like I did.


Johnz

[karon.h]

Thanks for all of your advice so far. I have a few more questions, what would happen if my husband was not prepared to help and if he did how would a self-employed persons income be calculated as sometimes he can struggle to make a decent wage in a week then other weeks can be ok. Also, if he has his accounts (personal and business] with a bank to whom i owe money would they continue to let him use his accounts as he has been with them for about 34 years and has had no problems with them whatsoever. Also, if he has any savings to subside his bad weeks and to cover him in case he has to be off ill would this be taken from him? I'm just worried because i know he's going to get majorly stressed and he has been ill in the past with heart problems and so i'm trying to find the best solution all round.

[MelanieGiles]

Your husband's income would be calculated on the basis of his earnings in previous tax years - similar to the way this is done for tax credit purposes. His bank accounts should not be affected, nor his savings.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[johnz]

My husbands current accounts and savings account are with my largest creditor and he hasn't been affected in any way. Also, he has disassociated himself from my debt by writing to Experian and Equifax, so his credit rating hasn't been affected either. Just make sure you remove yourself from any joint accounts you may have.

Johnz

[james.c]

This situation caused me a problem, just as i was going through the process of an IVA i met my partner. So its clear she did not benefit from debts as i didnt know her then. Even though she accepted my situation, she did not want to get involve and that it would not cost her anything and she will not provide any details to my IP becuase its my debt and my problem and nothing to do with her - which i agree and if the situation was the other way around i would feel the same.

For this reason we live in separte houses and will not move in together until after the IVA is finished another - 4 years to go, or if at any point i can offer and full and final settlment

no matter how bad money gets, theirs stll alot more important things in life