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My husband is considering an IVA as he has approx. £40k personal debt.I wondered if this will affect me,and whether my income is included in working out his IVA payment.Also I work as an accountant's assistant and know that if your husband/wife is declared bankrupt it prevents you from working in this profession.Does the same apply with IVAs??I have a good job with good pay and don't want to risk losing it! Pleas help!

Hi ach and welcome to the forum

Firstly I really don't think that your busband's bankruptcy would affect you in your career, but do checl your contract of employment to be sure.

With couples, where only one party is insolvent, both incomes are taken into account to assess the correct level you ought to be sharing the joint household bills. So your money will be taken into account, but only to assess the ratios you ought to share expenditure.

What level of disposable income do you feel that your husband has available to offer to creditors, and do you own a property which currently has equity?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks for your reply Melanie.We don't own a property but pay rent of £750 p/m.Not really sure how to work out the disposable income but approx 50% of his net pay goes towards the household bills. I pay the larger share of the total household bills, split 60/40, as I have the higher income.

Add both incomes together, divide your husbands income by the total income. The figure returned is the % your creditors will expect your husband to pay towards household bills.

IE Husband income = 20k, Wife income = 30k, total is 50k.
Husband income 20k/50k total income = 0.4 = 40%

Thanks for the reply-very helpful.Have done the sums and looks like the 40% he pays is about right!

No problems, at least that means you shouldnt lose any contribution to household bills from your hubby if he proposes an IVA then.

As for rent, Im not sure what is allowed for this and whether it is the same rules as for household bills - but probably is - maybe someone else can suggest?

You should probably take it, for now, that hubby will contribute 40% towards household (shared) bills and rent. So use that figure to work out his disposable income. You do this by getting him to do a income and expenditure review. Take his income only, then minus all the reasonable expenditure from it (based on 40% for shared/household bills). Note, things like sky subscription and holiday funds will most probably not be allowed - so you shouldnt list these (sorry but if you wont those, it will have to be you who pays). Things like petrol, car maintenance/insurance, prescriptions, dentist, glasses/contacts, clothes, phone, contingency + all household stuff (IE food, utilities, house insurance), kids bits and bobs if you have kids, etc is. Just try and think of any & all regular spends that are essential. Anyway, when you have subtracted those expenditures from income what you have left is the disposable income which is what you are expected to pay into your IVA.
If you want, you can post the results and someone will advise if a IVA is suitable for your hubby. It would help if you list who he owes what to in terms of the unsecured debt, and the disposable income.

Thanks for the info.Will have to get all the figures together and come up with what IVA he might be expected to pay.Could be in for a fun night!