I would really appreciate some advice. A few years ago I found myself massively in debt and decided to take out an IVA. Everything was included in the IVA including a joint loan that I had with a “then” partner. After a year or so the stress of managing an IVA and a failing relationship led us to split up, I contacted my IVA supervisor to make the appropriate changes to my IVA to take this into account and try and make an offer to complete the IVA. My creditors accepted this and a few months later I was issued with the Certificate of Compliance and successful completion of my IVA.
I have not spoken to my partner for years, and then out of the blue I got a phone call from her informing me that the creditors of the joint loan were chasing the debt from her. According to all the paperwork she received they are unable to chase me as I entered into an IVA and declared this loan in accordance with the law, but they would still attempt to pursue her.
Now moral implications aside, is there anything they can do (or the partner) at any point, now and in the future to try and recover the debt from myself? I am no longer bound by the terms of the IVA as I have completed the agreement. The joint loan was included but I’m pretty sure that only covers my half of the responsibility. I am particularly interested to her if she can take me to court in a civil action to recover this debt?
Any help would be gratefully received. I can let you know further information should you require it.
No - you dealt with all of your debts in the IVA - and you cannot be held to be responsible for this debt any more. When you borrow money jointly, you are both jointly and severally responsible to pay that money back - not half of it.
If your partner pays the remainder of the debt, in the law of equity she might be able to pursue you for half of the money, but this would be very expensive with no guarantee of success, and I suspect that she probably would not bother.
MelanieGiles wrote:
No - you dealt with all of your debts in the IVA - and you cannot be held to be responsible for this debt any more. When you borrow money jointly, you are both jointly and severally responsible to pay that money back - not half of it.
If your partner pays the remainder of the debt, in the law of equity she might be able to pursue you for half of the money, but this would be very expensive with no guarantee of success, and I suspect that she probably would not bother.
Thanks for the information Melanie, that is good to know. Would she have had to make a claim for this money when I entered in the IVA? Basically the IVA record will be removed from my credit history in 1 year and 11 months. Would she have a legal stand point to sue after or during this point?
The removal of your IVA from the credit scoring agencies records has no effect on your former partner's ability to claim against you - but I really do not think she will go down this route which is only a right in equity and not law - ie she would have to prove that it is fair that you owe her the money, rather than legally, and the fact that you have been in an IVA will be helpful to you on this point.
MelanieGiles wrote:
The removal of your IVA from the credit scoring agencies records has no effect on your former partner's ability to claim against you - but I really do not think she will go down this route which is only a right in equity and not law - ie she would have to prove that it is fair that you owe her the money, rather than legally, and the fact that you have been in an IVA will be helpful to you on this point.
Thank you for your information Melaine. Very Kind. All the best - IVA999
