I am in an IVA but my husband is not and while I understand that joint debts are the rsponsibility of both lenders I am confused on the following issue.
The only joint debts were overdrafts on two current accounts and my husband decided to pay off both of these as he was unhappy with other options of making payments to them. Does this mean that my responsibility to making payments via the IVA still stands? We both received a letter individually from one of the banks (eiher Halifax or Barclays) saying that the debt was paid and no further claim would be made against either of us.
Thanks for any replies
I know I am a good person, I just need to start believing it
Did your husband pay these off during the IVA ? If so, this is a bit of a no-no as it is favouring one creditor over another, which goes against the grain with the remaining creditors.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The debt was probably 'joint and several liability' so robbieboys husband could be pursued for all of the debts anyway, ruining his credit rating in the process. If he paid debts that he wasn't liable for or if he was insolvent it would be different.
The IP needs to know so the bank doesn't get paid for the debts twice.
If the debts were listed in the IVA the husband is now entitled to join the IVA for 50% of what he paid. He needs to notify the IP and claim his entitlement.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by martinw
The debt was probably 'joint and several liability' so robbieboys husband could be pursued for all of the debts anyway, ruining his credit rating in the process. If he paid debts that he wasn't liable for or if he was insolvent it would be different.
The IP needs to know so the bank doesn't get paid for the debts twice.
Martin
Good point, martinw -- I had overlooked that [:I]
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Not sure how this can be considered a no no while in an IVA - it was very clear that we were both responsible to pay these debts as they were joint and from correspondence received by my husband he had no choice but to pay them. While he did pay the full amount to Halifax a lower amount was agreed to Barclays if he paid the agreed amount by a certain date. At the time it seemed the easier option as he was very concerned about the threat of debt collectors etc.
I know I am a good person, I just need to start believing it
I think foggy simply overlooked the fact that these debts were joint(and the only joint debts) with only you going for an IVA.
When arranging or in an IVA it's considered a no no to pay one creditor more than another, as it's unfair on the other creditors. An example would be paying off all your family\friend debts (I'm not talking about £10 you owe your mum\mate here!) over say a bank debt
In your case it's slightly different as only 2 debts were in both our and your husbands name, these debts are collectible in full from both you and your husband. In this case paying off both debts to the satisfaction of the creditors is fine.
Had your husband decided to pay off one of your debts (in your name only) that would be a no no, for reasons above.
Martin
Last edited by martinw on Mon May 05, 2014 12:21 pm, edited 1 time in total.
