www.iva.co.uk

Hi
We've been in an IVA for 3 years now. We started with debt of 70k and so far we've paid in 39k.
The thing is it's got too much for us and we're separating. We've got 2 young children and a house which I'm hoping to keep
my question is would it be possible to offer the 39k(55%) as full and final settlement of the IVA as we are separating.
The original agreement was to pay back 52k(74%) Obviously our income and expenditure is going to change dramatically as my partner will be moving out and renting somewhere and I'll have more outgoings with the mortgage and looking after the children

Hi,

I am so sorry to hear your news, not good when these things split us up.

You need to speak to your IP. You may be able to offer the amount you have paid in, I don't know if it would be accepted or not, otherwise your IVA's will be seperated and you would each have to pay your own amount.

One of the professional will be on later to advise further.

I am sure that creditors would seriously consider an offer on this basis, as your disposable income is most likely to reduce considerably if two separate homes are to be funded.

How sad that yet again we are hearing that a debt management problem is leading to the break up of a family. Were your IVA payments set at too high a level in the first place? And if so, would a variation to a more affordable level save a precious relationship?

Hi
The payments haven't been too bad, it's been my bonus' and shares that have bumped up the amount we've paid in.
It's been the stress of it all thats caused the breakup. Plus the blame game we've been playing as we've not had the money to do what we want when it comes to holidays with the children. I think because of it we've just drifted apart and now we're completely different people.
One thing I'm worried out with contacting the IP is that when they find out we're separating they'll want me to sell the house or even fail the iva arrangement as we can't pay in what was agreed

Their strategy will be dictated by the terms of your proposal, so don't be worried about contacting them as they are there to help steer you through this.

Thanks for the advice. I'll bite the bullet tomorrow and phone them, the last thing I want to do is go bankrupt now so I'll keep my fingers crossed.

I can't imagine that they would force you to sell the house. As to you splitting up, it's such a shame. I remember an old saying though, When poverty walks through the door love flies out the window.

I doubt very much that you will be made to sell the house or want the agreement to fail.

I am sure they will be very sympathetic when you phone them and help you work out a solution.

Hi
well i've tried to contact my ip today with no success, the line is constantly busy. after working myself up to do it too. It's unusual for them when I've had to contact them before they're usually pretty good. This whole situation is making me feel so stressed. my partner hasn't actually moved out yet, he's still looking for somewhere to live.
I guess we'd have to wait until he's actually moved out anyway before we can negotiate on the IVA full and final settlement

Hi,

Try sending an email directly to your IP. You can do so via this link:

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

Be better than constantly trying on the phone.

Good idea - that means they will get your message directly and hopefully be able to talk to you asap.

Can I ask a question, if a couple is in an IVA (I do realise it's individual) can the combined payment be split down to cover the Individual's IVA? e.g I pay £540 hypothetically so to keep it simple for illustration purposes, £270 each and carry on paying after splitting up? Now, what if one goes bankrupt and the other remains in an IVA...theoretically possible I'm sure but let's assume some of the debts to go bankrupt on are in fact joint debts what happens then? Hope someone understands this jumbled post.

Two new income and expenditure accounta would need to be done taking into account the new living costs. There may be maintenance paid and received and one party will be renting while the other pays a mortgage. Whatever surplus is remaining will form the basis of each new IVA.

Each new IVA will list the individual's personal liabilities and their joint ones whereas the old IVAs would have listed all debts together. If there are two IVAs the joint creditors will receive a dividend from each IVA but if one party goes bankrupt only the other party's creditors [including the joint debts] will be paid.

If there is a property and a fourth year valuation this will also have to be addressed as currently all creditors will receive the equity release. I hope this is relatively clear but your IP should be able to give more specific answers.

She can Lesley, if you want to query anything specifically in this regard!

Hypothetical at the moment Melanie, thinking aloud...