www.iva.co.uk

Both my Husband and I entered into an IVA in 3/2004, agreed at 25p/£ for 5 years. We have noticed that a joint loan of £30k is on both our accounts at the full £30k (not 50% as I would have expected). Is this correct?

This is correct as you are both liable for the full amount. For example, if you went bankrupt the full liability would fall on your husband or if he repaid 25p in the £ the other 75 would be your responsibility. If you have two separate IVAs then the creditor is entitled to a dividend from both proposals as they have two signatures on the agreement.

Okay, thank you. Our IVA is due to finish on 12/3, but based on the last statement we received from the company dealing with the IVA, I think we might be short on the payment level. I wrote to them asking to clarify whether this was the case, but all they came back with was 'it may be possible to vary the agreement by extending it, but they would require further costs', no actual values. My Father has offered to help by funding any shortfall in the interim, but will they give us any notice of this or will we just be told it hasn't been completed? We haven't missed any payments, they are all up to date and they have been increased from £400 to £575 for me and £200 to £350 for my Husband over the life of the IVA. We sold our house right at the start and all the equity was paid into it, it would be heartbreaking to fall at the last hurdle!

No IP or creditor in their right mind would fail your IVAs at this time. If there was a minimum dividend stipulated at the creditors' meeting the IVA may need to be extended by a couple of months to achieve this or your father could pay the difference.

However, if you sold your home and never missed a payment I do not understand how your dividend will not be achieved as per the original proposal. Ask your IP about this and whether they would issue a certificate of substantial compliance given that you have done everything required under the IVA. This would enable your IVAs to be closed down when the five years is up.

I would also check that it was your actual IP who you spoke to as sometimes office staff with no real experience of your case may get it wrong.

If you are not sure whether it was your IP you spoke to, you can find his email address here:

http://www.insolvency-service.co.uk/newipsearch.htm

You can email him and put your concerns to him directly.

This is curious, as if you have complied with all of the payments, the IVA should be targeted to produce the dividend on time. The only thing which will affect this is if the creditor claims actually come in higher, or if your IP charges more in fees.

And on the joint loan issue - when you borrow money jointly, you are both responsible for repaying the whole lot, and not on a 50/50 basis.

Don't the creditors have to put their claims in at the beginning of the IVA. Is it possible for the amounts owed to be more than originally claimed.

Yes Debbie - they always will be slightly as there is at least a two week time delay from the date you sign your proposals to the holding of the creditors meeting.

This should not be material, but as some IPs do not verify the creditor balances in advance (dangerous in my opinion) then this can cause larger differences to be discovered.

Get all this information as to what creditors claims were agreed by your Supervisor and remind us what your separate proposals promised creditors. Then we can advise.

I hope you can get it sorted Debbie - let us know how you get on.