recieving double the amount owed, is this legal?

[brian k]

i have an IVA, one of the debts is for a joint bank account which i am paying under the agreed IVA,however my wife is also being asked to repay the same debt, is this legal? They will be recieving double the amount that i actually owe?

[pixie]

Hi Brian, welcome to the forum.
If your wife is not in an iva herself then the bank are within their rights to chase her for the full amount. They won't be paid twice and are only able to collect what is actually owed, but the iva will not decrease the amount until dividends are paid.
Your IP should have made you aware of the implications for your wife when taking out the iva.

[kallis3]

Welcome from me too Brian![:)]

[LoneRanger]

I questioned this with my proposal Brian, Like pixie has said your wife will be chased for the full amount if she is not in an IVA. this is why my partner also proposed an IVA else there would have just been no point.

[MelanieGiles]

This is all to do with joint and several liability, where both of you are responsible for the full repayment of the debt. If your wife carries on paying the contractual payments, and your IP sends dividends from your IVA, the debt will be paid off via a combination of monies from both sources.

[Vincent Bond]

This issue is of course not exclusive to couples...

With any joint debt be it business partner, family member or simply a friend, both parties will be pursued for the full remaining amount. In this way the creditors are ensuring that they get as much of the debt back as they can .

In answer to your question, the creditors would not be getting double the debt back, but are more likely to get most or all of the debt by approaching it in this way.