Joint account

[hara]

This is to Melanie giles or Mr. Davie or any one who can answer.

I am in IVA, but had a joint account which had an over draft of 2000 and was included in IVA.

My wife is not included in IVA.

My wife has received a letter to day demanding 2618 pounds.

can they do that?

I phoned,a lady answered and says that as account is joint she is jointly responsible,is it right?

My wife never operated account though it was in joint name.

We are extremely worried can any one advice please?

Hara.

[Adam Davies]

Hi
I'm afraid to say that they are correct in that your wife is jointly liable for the full debt[not just half of it]
However your IP should have allowed for this in your IVA and given you enough disposible income to service this debt.
Your wife should agree a repayment plan with the bank and stick to it
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

[hara]

Mr Davie,

Thanks for a swift reply.
This amount has been included in IVA,If my wife is to agree a payment, every month.how does it affect the sum already included in IVA.

effectively we will be paying twice the amount,my wife by mutual arrangement and I through IVA.making it adouble payment.

Appreciate a quick reply.

Hara.

[Adam Davies]

Hi
I know and this is an issue that has been discussed on this forum before.
Basically your wife would pay off the debt in full and the creditor would not receive a dividend in the IVA,or if your wife has only paid back part of the debt by the time yor IVA finishes the claim in your IVA would reduce and your other creditors woul receive a slightly higher dividend.
I'm interested to now what your IP had to say about this joint liability when setting up your IVA ?

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]

Any amounts that your wife pays off this debt will be deducted from the sum you are jointly due to pay. Your dividend payments will continue to be calculated on the full amount owing, and only when the debt has been repaid in full will you and your wife be released from it.

What a shame that this was not spotted by either yourself or your IP when your IVA proposals were being put forward.

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

[hara]

Dear Mrs.Giles,

I did not know about this, as my wife did not operate the account, but I did, including it in IVA, I hought would be end of it.

I am surprised that Grant Thornton,did not take that in to account.

I did mention it to the lady,in my first and only meeting with her.

I am surprised that Natwest has left it for such a long time,so that charges could accumulate.

It is very sad that Banks are making money out of people in difficulty.

Very,Very sad.

Hara.