partners living together separate finances?

[wondering_sue]

I would like to know how a single IVA would work with partners living together but with separate finances? I have debts that r unmanageable and have looked into an IVA but it seems because they take the household income then subtract the household expediture I look far more comfortable than I am. My partner doesn't have debt problems and going into a joint IVA is not an option.

[melanie.n]

Hi

When applying for an IVA and co-habiting you have to declare on the income & expenditure ALL income into the household - both parties plus anything additional any benefits received, child benefit, child tax credit etc. Your contribution to the household expenditure would be based upon the proportion of your income to total household income - so if your income is 50% of total household income it is generally expected that you will meet 50% of the household costs leaving 50% of your income for the benefit of your creditors.

Melanie.n

[elizabethr]

I was wondering about this too - I am thinking of a single IVA as all the debts in my name. My husband already does a DMP of his own but totally informal. His creditors write every six months for a review and I fill in the budget statement for him. 3 things definiately attributable to him then with the other household expenditure I put a third as his contribution because he only comes out with 720 a month which is about half of what I earn but he could never afford half the bills on that pay. They have had no problem with that

[MelanieGiles]

Elizabeth

If you are going to be proposing an IVA to your creditors, they will not be happy to see you supporting your husband's creditors. The usual rules which apply in insolvency proceedings are that shared expenditure is paid in the same ratio as your respective earnings. This could result in your husband's DMP payment having to be reduced.