please can i have some advice?

[njc]

Hello,

It's my first time on here and I've found it really helpful to read the other posts - I just have a few questions I hope someone can answer for me:
My partner is considering an IVA as he is in quite a lot of debt, mostly acquired before I met him and it was for his career training. We cannot carry on as we are or he will eventually start to default on his repayments. He also has further training to complete and is concerned how having an IVA would impact on this for him.
We have one joint unsecured debt and a joint mortgage but are wary of securing any debt on our property as we may not be able to keep up the repayments. All our other debt is in our own names.
I am managing my own debt, so my main question is, if he does decide to go down the IVA route, will my credit rating be affected due to the joint debt(as we are financially associated by this) and will I still be able to easily get credit in my own name? I can't take on any more debt at the moment but may want to in the future to consolidate my existing debts, freeing up money to support us both.
Also, would they consider any further career training for him as a legitimate expense or as a luxury that would not be allowed under the rules of an IVA?
To be honest, we're both losing sleep over this and he's worried about landing me in financial difficulty because of his debt. Any suggestions and advice would be much appreciated!! [:)]

[MelanieGiles]

Hi Gemma and a warm welcome to the forum

Firstly with regard to your partner's ongoing training, it may be possible to include an allowance for these costs, and I have certainly done this on many occasions for clients of my own.

With regard to the joint debt, if he enters into an IVA, you will be chased for the full repayment - so would you be able to afford to pay these ongoing payments from your salary alone?

Your own credit rating is unlikely to be affected by his IVA, but it would perhaps be better to curb the spending on credit and try and live within a budget for a while. Your partner will need a lot of support from you during his IVA, and it already seems that he is getting a lot of that!

Please continue to post any queries you have relating to the process, so that others can also share from the discussions.

[Viki.W]

Welcome to the forum Gemma. Just wanted to say hi.[:)] Keep posting, you'll get lots of advice and support here. X

[njc]

Thank you, it's such a relief to find some support!
Melanie, I would probably struggle to pay the unsecured loan by myself. Is there another way he could get some financial breathing space and how restrictive is an IVA with disposable income?
He's come so far with his training, some people in his field have already declared themselves bankrupt but I know he would see that as a last resort.
Sorry one more question - would money he owes to a relative be taken into account when looking at his outgoings for an IVA?

[MelanieGiles]

Gemma

You might be able to negotiate reduced payments with the joint creditor, but extending the terms of the loan, and of course they will get payments out of your partner's IVA as well.

I would suggest that he now has a chat with an insolvency practitioner, who can advise on all options and the advantages, disadvantages and implications of each one. His relative's loan would need to be taken into account as a creditors, and they would receive the same return as the others.

Hope this helps!

[njc]

Melanie,

Thank you so much for this, I will have a chat with him when he finishes work and take it from there. I just wish I could do more to help him but I think once he talks to someone, he'll feel a lot better about things.

[MelanieGiles]

I can guarantee that he will feel better when he knows his options - and he is very lucky to have such a supportive partner, Gemma. Let us know how you get on, and please continue to use the forum for help and support.

[njc]

Thank you, I am very glad to have found this forum!