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I have been served with a bankruptcy petition and although I have tried to come to an arrangement with the creditor this has not been accepted. Therefore with my other current committments I do not have any other choice but to go bankrupt as the value of the debt with the petitioning creditor is greater than 25% of my liabilities. However my question relates to one of my debts which is in joint names with my wife, if I go bankrupt will that debt just be added into my overall liabilities or will my wife have to take responsibility?

Welcome to the Forum Grant,

You will be covered as the debt should be included in bankruptcy but I believe the creditors can/will then persue your wife for full payment.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

Hi Grant

I agree with the IVA Experts - this is something called Joint & Several Liability. This means that you and your wife were both liable for the full amount of the debt as individuals when you took out the credit agreement. Your bankruptcy would remove your liability, but not your wife's. Therefore, the creditor can and probably will chase the full outstanding amount from your wife.

It may be worth calling someone like the National Debtline for further advice on this on 0800 808 4000

Kind regards
Bernadebt

“Debt is the slavery of the free”

“I can live without money, but I cannot live without love.”

Hello Grant

Just because a creditor has petitioned for your bankruptcy doesn't necessarily mean that they would not accept an offer through an IVA.

Don't forget that the creditor has no idea as to your abilty to repay the debt and may have commenced BKR proceedings in the belief that you could but just weren't prepared to pay them back.

within an IVA proposal you legally state your financial position and outline an offer to your creditors that is visibly better than they could expect from BKR.

Under those circumstances a petitioning creditor, having had it explained to them within the IVA how you got in to the financial position that you are in, could well vote for the IVA,

If they voted against it, logically it could only be for the following reasons.

1 They believe that you have more assets or earnings than you have declared in the IVA.

2 they believe that you have given assets away or paid off other creditors (such as family) at their expense which they think they will be able to get back in a bankruptcy

3 spite

If you are minded to look at an IVA, however, you should see an IP quickly.

Hi Grant

I would certainly try for an IVA as well.

If not would your creditor could consider a debt management plan as well!

Good Luck

Given the creditor's voting power, probably better to make direct representation to them before putting the whole IVA together.

If you are not bankrupt yet, I would talk to the petitioning creditor to see if they will agree to an adjournment of the bankruptcy proceedings whilst you forumulate your IVA proposals. As it is likely that they may well get a better return under an IVA than bankruptcy, you may be able to persuade them to withdraw their petition.

Good Luck.

And to Ray - it was a pleasure to meet you at the debt forum this evening. Sorry I had to dash off, but I hope you enjoyed the debate as much as I did. Very nice to put a name to a face!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thank you all for your feedback and advice.

My hearing is next week and I have had agreement from my other creditors and have been paying them however this one has asked for a large lump sum upfront that I am not able to meet. (Unfortunately they will make up over 25%)

I have offered to pay it on sale of my house with a monthly amount until that time, but they would not agree, I have also offered a voluntary charge on my property, but unfortunately they will not accpet this either, so I guess it must be spite![:(!]

Crazy really as they will loose a lot on this.

Do something now - or you will find yourself bankrupt if you do not defend the petition or ask for an adjournment.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp