"joint" IVAs

[louiseh]

As i understand it Joint IVAs don't exist, but individual IVAs can be presented together and are interlocking producing one monthly payment. If one part of the IVA is not accepted what happens next? Can one person accept the IVA and the other go for Bankruptcy, if so what happens to joint loans and jointly mortgaged property with little equity. I only ask as I'm preparing myself for all eventualities.

Thank you

[MelanieGiles]

Hi Louise

If your IVA is not accepted, but your partner's is, you will have to decide whether one person carries on leaving the other to consider other options. If your partner could sustain an IVA in their own right, then they could continue, but the reality is that most couples share their incomes and expenditure and rarely have enough individual disposable income to carry on with an IVA in their own right.

With regard to joing loans, you are both still responsible for the whole lot and with property only your half is taken into account in the proceedings you decide upon.

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

[louiseh]

Thanks for the advice, I personaly wouldn't have an issue with Bankruptcy but my husband would, also our debts aren't evenly split, our incomes are about the same but 2/3 of the debt is in my name (about £46,000 to his £26,000) so on his own he would be able to offer a higher dividend that may get accepted or even DMP whereas my only option would be Bankruptcy. We only have one joint debt a loan, so if I were to go Bankrupt would this just get transfered to my husbands debt, or would half be written off by my Bankcruptcy, would the OR be able to force the sale of our property( although little equity) or would this be tied up with a fourth year equity release if my Husband were in an IVA.

Thank you

Thank you

[MelanieGiles]

Hi again louise

If you were to go bankrupt, then your husband would be responsible for the entire joint debt under the principles of joint and several liability.

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