My wife has been waiting months for her IVA proposal to be drafted. The debts relate to a partnership that failed because of the other partners behaviour. I notice that her IP insists on putting the whole partnership debt in the list of creditors rather than just half. The other partner does not need an IVA and for professional reasons will never apply for one. I know that she and her former partner are "joint and severally" liable for the partnership debts but what is the point of putting the whole debt in when the maximum she well ever be actually liable for is half?
If they are joint debts, then both partners are liable for the whole amount, not just half as they are jointly and severally liable.
The partner will have to continue making payments into the debt.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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It is isn't really doubled as only the original amount will be paid off, so once the IVA has finished and the partner has made payments into the loan and it gets to the orignal debt, then it will finish.
Hope that makes sense!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi
Even though the other partner is going to pay the debts you can never be sure what the future holds, if he/she stopped paying then the whole amount would become an accurate figure.
Is the proposed dividend above 50p ?
Regards
If you have interlocking IVA's i.e. both you and your partner enter an IVA and any joint debts are included in full in both proposals. So if you were paying 22p in the £ and your partner 27p in the £ then the joint debt creditors would receive 49p in the £. Going back to the partnership if the other partner paid the debt in full then they would be entitled to the dividend that would have gone to the creditor.
hope this helps.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
The other partner will not be getting an IVA but he will also not be paying the full debts. If you look at my previous posts you will get a better picture but in essence the IVA is as much to protect my wife from the behaviour of her former partner in the realisation are rather lack of efficient realisation of WIP as it is to protect her from creditors. I take the point as to subrogation but given the history of the matter pursuit of my wife by her former partner would certainly be professional suicide for him.
sorry, what I was trying to say is that it will show on your wifes IVA the full debt but her former partner will also be chased for the full amount. If he decides to pay the full amount then any dividend from the iva will then go to her former partner. If he decides only to pay his half of the debt then this might also effect his credit history. Does this make sense?
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
