I wonder if anyone could please help with some advice.
I am currently in an IVA and have been for a year now, and I am married, my wife is not part of the IVA.
One of my creditors was HSBC and it was for £900 on an overdraft based on a joint current account with my wife, HSBC agreed that this could be dealt with via the IVA.
However after a month or so of my personal IVA running, my wife started getting letters from a collection agency on behalf of HSBC telling her that she was liable for the overdraft as it was a joint account.
We aranged with the collection agency for her to pay them £47 per month, which we have been doing for almost 11 months.
My question is this... Is my wife only liable to pay half of this money ie: half of the overdraft £450 or is she liable to pay all of it, even though it is covered under the IVA i have ?
I can't seem to get clarification from Money Debt & Credit who are running my IVA, so perhaps you wise ones could possibly help.
I look forward to your reply.
Kind Regards
Jas...
This should have been dealt with by your IP, who is well aware of the principle of joint and several liability - which means that both you and your wife are both liable for the whole amount outstanding, and not half each. I suggest that you now ring them to enquire how they propose that you now deal with this.
Hi there Viki, Andy & Melanie, Thank you so much for your replys, I will phone Money Debt & Credit on Monday to enquire why they did not advise me properly as this was the only joint debt that was taken in to the account when starting the IVA.
On a second note concerning this, if my wife and I continue to pay back the £900 in the form of payments at £47 per month to the collection company this means HSBC will recieve their money back more quickly, what will happen to the amount which was originally included in the IVA proposal anyway? Do HSBC have to inform Money Debt & Credit or the courts that they have got this monies back, or will nothing be said and I end up paying this money twice, all be it in a lesser amount via the IVA?
If your wife pays the debt off by monthly instalments as you have suggested, they will be removed from your IVA as a creditor. In the meantime, any dividend payments paid out by your IP will help to reduce the balance. Rest assured you will not be paying the debt twice!
