separating, I am concerned about the future

[JoL]

I have an IVA with my husband however we are currently thinking of separating. Could you tell me will the repayments be adjusted to take into account circumstances etc? I would be single with a dependant child and am concerned about the future.

[pbeck]

Jol

You would have to work out what both of your budgets will be assuming you separate from each other, then see if this means that you can still afford to pay anything into the IVA. If so, then depending on how much you could afford, your IP may be able to call a meeting of creditors to approve a change to the IVA allowing a reduced level of payments. If it means though that with the additional living costs you can no longer afford anything to pay towards your debts, then probably the IVA would fail.

[MelanieGiles]

I assume that your IVAs are mutually reliant, Jol, ie you pay one combined payment and all of your creditors receive the same dividend?

If you separate, you will be presumably be funding two sets of housing, bills etc, and your husband would have to pay you child maintenance on top which would become part of your income. So the figures could change quite dramatically.

Do you own any assets of material value - such as a property with equity or other items which would be affected under bankruptcy proceedings. If not, then this could well be a better option to enable you both to make a fresh start.