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cerberus
- Posts: 57
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Good evening.
Both my wife and I have entered separate IVAs as we were told that joint IVA's don't exist. However, the full amount of any joint debt appears in full as creditors on our reports. If the IVA's continue to run as they are at the moment, due to the percentage of joint debt, the creditor stands to make over £4000 more than the original debt, surely this can't be right
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relieved33
- Posts: 1166
- Joined: Mon May 18, 2009 7:22 pm
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They will never fet back more than the debt plus statutory interest. If you pay at this level, my understanding is the other creditors will have a higher return as your payment will not reduce for the cleared debt.
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cerberus
- Posts: 57
- Joined: Wed Dec 02, 2009 11:04 am
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ok, I'm trying to get my head around this.
If, for example, the joint debt on my IVA amount to 10% of my overall debt, and I paid in to my IVA £10,000, I would assume £1000 goes to the joint debt. If the same figures apply to my wife, in total £2000 goes to the joint debt. What happens if this £2000 is nearly double the original debt
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relieved33
- Posts: 1166
- Joined: Mon May 18, 2009 7:22 pm
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Once that debt has cleared, the dividend to other creditors would be increased. I assume you mean if you have a combined return of 100p in the £ plus interest and fees.
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cerberus
- Posts: 57
- Joined: Wed Dec 02, 2009 11:04 am
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Sorry for not being clear relieved33 but you have answered my question.
Many thanks
