www.iva.co.uk

Hi, Im having a blonde day today and thinking about our Joint IVA. This is purely a scenario, but can someone explain to me if say I win the lottery and I win £75,000 and I pay off my initial debt i.e. £50,000 and my husband has the same debt of £50,000 where would that leave him? Would the debt be reduced for him to then do a new I&E. I have always been confused as to how this would work, as they have taken what we owe i.e. £50,000 in total and put it as a charge to both of us as we are both responsible (?) Would they then take the spare £25,000 left as a windfall as well? Sorry I did say having a blond moment!! Thanks

Good question in my opinion, I'm sure one of our professionals will answer this correctly.

The way I see it is in an interlocking IVA is the total debt is £50k and you pay £50k plus IP charges then the debt is finished, the remaining monies would be yours to keep.

I would imagine you declare the win and put forward a proposal of full and final settlement for the both of you. I would personally be wary of having to tell them how much I had won because they might try whacking interest on or taking the £50k plus you paying the IP's fees instead of coming out of the pot. If the debt is £50k in total and you are both charged as responsible it doesn't make the debt £100k it just means you are both responsible for clearing the £50k. Legally, I am sure one of the experts will be along to advise you whether you are bound to declare how much you win it probably depends what it in the agreement you sign for the IVA.

Thanks Lesley .. [:)]

Ok, what about if I owe more than my husband, would his debt still remain to be paid, or would it be covered by my larger debt amout? Thanks[:)]

I was afraid that would be the case. I was under the impression that the debt was £50k in total but you have both been charged with it as in both responsible for it? If that's the case I would imagine a win of £75k would cover both your debts and the IP Fees with you having whatever is left. Again an expert will soon be along to advise expertly.

if i,m reading this right the total debt is £100000 plus fees.i expect your repayments plus fees would be less than £75000.so technically the windfall would have to be declared into your iva first if it was your windfall.you then could use the remaining amount to offer as a full and final settlement for your hubies.a good ip would sort this for you so suspect the interlocking iva,s could be completed one way or another with such a large windfall.

Hi all, Basically we pay TWO separate payments.. so each debt is separate, but our IP has lumped the figures together for both of us i.e:

1 off Northern Rock Debt = £25,000 on mine
and again on my husband's total debt owing
Then added to mine are My Credit Cards etc, and then his Credit cards on his.

So what I am saying is that if I owe more than him originally and I mean here the total owed to the creditors, not any discounted total, would his part of the Northern Rock Payment go off his total debt, as I would have paid it off in mine with my lottery win. Sorry if this is a bit confusing, but this is how it is laid out to us in our original proposal. Thanks [?]