keeping your partner out of the IVA

[rickyg33]

Am I right in believing that if your wife/husband/partner is not named on your credit cards and unsecured debts [to be included in the IVA] and has no income [all monthly costs come out of your salary] then they need not be involved in any way in the IVA?

The only thing that might overshadow my thoughts is the equity release in year 4. But if my wife agrees to help release the equity to make a contribution into the IVA at the end of year 4, does she have to be 'caught up in it' so to speak?

She understandably wants to maintain her good credit rating and keep open the options that not being in an IVA gives.

rickyg

[Adam Davies]

Hi
Creditors will want to see both of your incomes and will want to see that both of you pay a fair contribution to the household bills,depending on your income ratios.
Creditors believe that the partner has benefited from the credit indirectly so that is why their income is also assessed.
It will only be your share of the equity that is released in the final year and your partners credit rating "should" be fine but there is a danger that creditors will view that differently in reality especially if it is a spouse.
Regards

[rickyg33]

my wife isn't in work [and hasn't been during the time I stupidly racked up the debt], so presumably although they'd want to ask the question, the answer would be "no income from spouse"

[Adam Davies]

Hi
That's fine
It will be down to your disposible income etc,however if your wife does start work within the five year IVA term you would have to increase your payments
Regards

[rickyg33]

I think we could cope with that. If she works and we can afford to put some more towards the creditors, all well and good.

I'm just keen to try and make sure that she isn't tarred with the same brush, as it were. This is my mess, I'll take the rap and I'll be the one that has a nil credit rating. I'll also be the one to earn the cash to keep to the IVA [if that's the way we finally decide to go].

My wife will be the one managing the money and making sure we don't overspend.

rickyg

[PoorbutHappy]

My wife earns far more than I do. Just means she contributes more to the "household" bills than I do (I bring in 40% of household income, so me pays 40% of household bills). I then have some personal expenses (runing car taking me to work etc), with the remainder going into the IVA.

If we get paid more/less then this ratio moves round. My wife is free to spend the remainder as she wishes, as I am the one with the IVA.

[MelanieGiles]

Hi Ricky

Creditors will be keen to know why your wife is not working and therefore contributing to the shared household costs - so if she has been unwell, or is looking after small children - make sure that your IP makes this clear in the proposal document.

[rickyg33]

She was unwell when she was working a few years ago and also had to nurse her mother through cancer - a battle that her mother lost unfortunately.

Now, she has to make regular trips to look after her elderly dad.

[MelanieGiles]

Those are perfectly honourable reasons Ricky. just make sure that the point is made in your forthcoming IVA proposal.

[james.c]

i potentially had the same problems.

All the debts i incurred were before i met my partner. When i met her i was applying for the iva, she didnt have a problem with the situation but didnt want to be invloved at all, including showing my ip what she earned etc, so we live in spearte houses until my iva is completed

[MelanieGiles]

What a shame that some silly procedures and policies, can affect people's lives so much, and make them put their future plans on hold. IVAs were meant to stop all of this and allow people to comfortably pay off their creditors without their lives being affected unduly.

I hope you manage to see a lot of each other James!

[james.c]

yes we do and soon even more so when the twins are born.

The sad thing is by the time my partners maternity pay stops in september we will live together and this just shows how i am trying with my iva, even on one wage i will still be able to maintain my payments without a reduction - i know it will be hard.

She as offered to remortgage he house in september to give me 10k, but only if its a full an final settlement, but this will not be allowed, because in my chairmans report i can not offer a full and final settlement until i have paid 24 months which will be Januray 2009

[andrewgoodman121]

what things are totally forbidden when doing an IVA.
i feel too scared to touch my bank account.
do you draw it all out or leave some in your bank account once your IVA payment has gone out.

[aguise]

Hi James how long now till the babies arrive.

Ang

[MelanieGiles]

Hi Andrew

You basically live a normal life - so long as you make your IVA payments when they are due the rest of the money is yours to spend how you like.

Your IP will undertake an annual review of your circumstances at the end of each year, and during the year you will be asked to provide copies of wage-slips at quarterly intervals with a view to paying over 50% of all additional monies you have earned during that period. A lot my my clients send monthly cheques for uplifted amounts just to be on the safe side!