www.iva.co.uk

Hi,

With changes in circumstances, my partner now contributes only 11% of the total household income. We both have debts. I am in an IVA, and my partner is in the early process of arranging a DMP. My debts are nearly £60k and hers around £8k. So mine far outweigh hers.

My partner is concerned that her creditors will argue that my creditors are getting a greater share of the total household income, if I attempt to maintain as much of the originally agreed IVA payment as I can.

I don't think her creditors can make any claim to my income. We are not married, although for benefit and tax credit purposes we are 'living together as if married'.

We have split the bills so that we pay towards household bills in ratio to how much we bring into the house. So if council tax is £100 PCM, I pay £89, my partner pays £11.

Firstly, is that a legitimate way to split the household expenses?

Secondly, can her creditors make any claim to the total household income?

Her former husband ran up debts on and at the time her creditors said that his creditors were getting preferential treatment, over hers. Does being married make a difference here, or is it just purely based on whose name the debt is in, and how much of their own income that person has?

Lots of question I know.

Hi, I feel that a debt management plan is far more flexible than an IVA in respect of payments (not that I have ever entered one, I am in an IVA). I further feel that your IP will advise you case specifically about the payments for the IVA. If they are not joint debts I don't think they will be interested in your money plus your disposable income will be tied up in your IVA.

I'm sure on of the professionals who post on the forum will be along soon to advise more concisely.

Good afternoon.

To answer your questions, yes the way you have described your situation then that is a perfectly legitimate way of splitting the bills, and no they cannot as to do so would jeopardise your legally binding IVA in favour of a not so powerful DMP.

As a matter of interest, and using your own calculations, how much can your partner afford to contribute to her DMP on a monthly basis?

Regards.

Not a lot really. Struggling to find £50. She has come off carers allowance and we think now qualifies for Contribution based JSA. That will help until she finds work. Just want to keep the wolves at bay until our financial situation stabilises, and we can make a rational and informed decision on what to do next. It may be that BR is the best option for us in the long run, but then we could do that and our situation improves in a few months and we're stuck in BR.

I think that you have been very sensible in how you have worked out your budget, and I hope the DMP works for your partner. When your IVA is finalised, you could contribute to her plan and thus try and reduce the term of this.