Hi, hope you can help. I entered into an IVA in July last year, at the time my partner was helping support me and played a big part in getting me back on my feet; to the point where he could have been on the list of creditors if he had wanted,but he didn't want to and made it very clear to Payplan in writing he didn't want to be involved with my IVA and I didn't want him involved they were my debts and nothing to do with him. A few months before my IVA was finalised I moved in with him and his two older children, Payplan were informed, and when it came to my IVA hearing day the creditors put a clause in asking for a joint income and expenditure to be produced by the 1st anniversary of the IVA and any surplus of income should be paid into the plan (it doesn't specify who's surplus mine, his etc.); we gave them all required documents, with some concern as each time I had contact with Payplan I said my partner was nothing to do with my debts and I didn't want him dragged into it, I was told it was an Individual voluntary arrangement not joint; so now I have just had my 1st review only to be told basically that because my partner earns significantly more than me, even though he pays all the bills and still largely funds his kids and helps me; I have to increase the payment because I have a surplus of joint income, only its not joint its his income. Now he hasn't signed anything to say he will contribute hes been dragged in by this clause, and I certainly don't want that, I said to my supervisor it was getting him to pay for my debts indirectly and she agreed; this is wrong and I feel I've been lead astray being told he wouldn't be dragged into it; and now don't know what to do, I have a furious partner and am stuck with an obligation that's misleading and I'm in the middle, it's supposed to give you your life back.
Unfortunately Payplan is one not recommended if there are two of you in the same house but only one in an IVA.
Most others just take the income of the other person into account to make sure you both are paying your fair share of the household expenses on a ratio depending on what you both earn (or a 50/50 basis if the other person does not want to disclose their income)
Payplan have their own rules on this and take the full household income into account for the IVA itself thus the person not in the IVA is paying for the IVA themselves.
If with Payplan, it would have been better to wait to move in or have drawn up a "lodger" agreement with you paying your partner a "rent".
It is a pity this was not mentioned before you set up your IVA as if it was thought you were going to move in together it would have been advised to avoid Payplan.
You were mislead - this is a standard clause for Payplan and the reality is they put it in as a matter of policy.
You can let the IVA fail by not paying for 3 months and then consider going into a debt management plan until you know what is really best.
However it would mean losing whatever you have paid to date and dealing with creditors again.
Your partner can absolutely refuse to release any of his income - as indicated his should only be taken into account to understand whether the bills should be split 50/50.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
As said above this is Payplan's biggest flaw and one of the reasons I would never recommend them for an IVA, despite the fact that they do run an IVA better than some !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Have to say that if both of you have an IVA they are good.
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
I agree that your partner should have nothing to do with this and Payplan should sort it out. Otherwise you should seriously consider bankruptcy as you may find that you could end up paying less or even nothing towards bankruptcy. Personally I would not pay any more until this is resolved so demand to speak with the IP.
Even with a joint I&E creditors can only request what is your surplus as your partner's is his own. The I&E will usually apportion out the expenses to show each person paying their fair share so this needs to be done.
I am about to go with pay plan and live with my partner in his house which he owns, I too want him to having nothing to do with my debts I take pay plan would not agree with this?
Personally, I would not proceed with Payplan with your set of circumstances. In any event, I would always suggest you chat to a few companies to compare advice and get a feel for who you are dealing with.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If I remember rightly I think you had an IVA a few years ago with GT? You could consider them again.
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
Some creditors do insist on joint income and expenditure accounts but this does not mean that the surplus of the 'non insolvent spouse' should be at risk. If the spouse refuses to provide any information we can operate on an estimate or assume a straightforward 50/50 split.
No case is the same so it depends on who your creditors are and your individual circumstances. It would certainly be advisable to take advice from the independent sector and not just the bank funded one and you can then decide what is best for you.
I have spoken with someone last night about an IVA and they have advised because I live with my partner for 10 years and even though the house is not mine my creditors will say I have money in the house, my partner has refused to disclose his expenditure. can they make him remortage his house for my debt? that dosent seem right?
