www.iva.co.uk

Hi,

My partner and I moved in to a new home together recently. My partner has outstanding gas and electricity bills from the previous address. Unfortunately, due to a calculation error that took about 3 years to resolve, the electric bill amounts to just shy of £500. We don't have that sort of money lying around spare.

In the new property, the gas and electric are with a different supplier, and only in my name. My partner isn't an account holder, but is down as someone authorised to talk about the account with the supplier.

What can we do about this debt? My partner has other debts from catalogues and credit cards etc, dating back years.

My own IVA is, and probably has failed now. A big drop in my partners income meant that I am now roughly 90% supporting the household finances, and the IVA has been neglected, through no fault of ours.

Can the supplier from my partners previous address cut off the supply to the new property, given that it's a different supplier and my partner is not on the account? Also, what are the consequences of not paying the utility debt? My partner has no income to speak of (child benefit and a small child tax credit) and my own debtors will not take kindly to me paying for her debts in preference to mine. Bankruptcy seems likely, so it's even more important not to do this due to the preferential treatment aspect of this.

Any advice gratefully received. Thanks.

Regards

CoolConkers

Hi Coolconkers,

Your old supplier will not be able to cut of your current gas/electric supply. It is now simply another unsecured debt which will be subject to the usual enforcement action (collection company letter, phone call, possibly CCJs etc).

If your IVA has indeed failed, you will still have all your original credit liabilities plus this new gas/electric debt.

Not knowing your current debt level, but with an apparently large drop in household income, I'm assuming your monthly disposable income is now very low?

If so bankruptcy seems like it could be a good solution for you.

Also, what sort of level of debt does your partner have?

Hi Coolconkers welcome to the forum. Have you spoken to your IP about your IVA failing, it might be best to give them a ring and explain the situation

Dave Bowman wrote:

Hi Coolconkers,

Your old supplier will not be able to cut of your current gas/electric supply. It is now simply another unsecured debt which will be subject to the usual enforcement action (collection company letter, phone call, possibly CCJs etc).

If your IVA has indeed failed, you will still have all your original credit liabilities plus this new gas/electric debt.

Not knowing your current debt level, but with an apparently large drop in household income, I'm assuming your monthly disposable income is now very low?

If so bankruptcy seems like it could be a good solution for you.

Also, what sort of level of debt does your partner have?

Hi,

Mine is around £53k, my partners £9k (including utility). Combined disposable income went from £500 to something silly like 40p. BR seems the likely outcome for us both.

Hi and welcome,

I presume your new home is rented? If so, then it sounds as though bankruptcy could be a good option for you.

I would speakn to your IP in the first instance.

Coolconkers

If your partner has just been presented with a large bill, for usage over a year ago - have a read at the below !

If your supplier is at fault, and you do not
receive a bill for more than two years, then
from July 2006 any outstanding debt that
relates to energy consumed more than two
years ago will be cancelled. From July 2007,
this will reduce to one year.

Hope it help

Best Wishes

The bill was known about as it was in a payment plan in order to pay off the arrears. The arrears was created by under-estimated bills and that she didn't have an account due to the supply being held in limbo for months and months, because of probate when her landlord died, around the time of moving in about 3 years ago. The arrears was being sorted out slowly, but moving and loss of income puts an end to being able to pay it back. Now I understand that it is just an unsecured debt.

My partner is going to write to her creditors and say that without any income she will be unable to meet any payments, beyond £1 per month per creditor (even that is tight). She is concerned that they'll argue for a slice of household income, but as I understand it, my IVA overrules them, and even if that fails, my income cannot be used to pay her debts over my own. My are far greater, and for BR purposes, I cannot pay her debts while paying only a very small token payment to my own. Besides that, my income is mine, and hers is hers. On an I&E sheet we've worked out a ratio of payments i.e. I pay £110 to council tax, she pays £11. That's the income ratio we have to work on.

If we received some child maintenance from her ex to contribute towards the upkeep of his children, then we'd be in a better position. As it stands, we're struggling along without it, just about able to pay the essential bills. I don't resent the contribution, but I do resent that he is paying nothing, shirking his responsibility. I have to pay maintenance towards my kids, and could do without the expense, but it's a moral and legal responsibility.

Your partner's creditors have no claim on your income and are only entitled to a slice of her income. Is she likely to get another job or receive any child maintenance in the near future. This would allow you to propose a new iva if that's what you wanted. It hardly seems fair that supporting her and her child is forcing you into bankruptcy. But you are right in thinking you would each have to go br to clear your debts individually.

If the partners debts are so low, and they are in rented accommodation, a Debt Relief Order could be an option for her which lasts for a shorter time than BR and is much cheaper as well.

Hi

Based on the above, I would second Kallis3's opinion - opt for bankruptcy for yourself and a Debt Relief Order for your partner. That'd solve both of your problems and you be freed from these obviously over whelming debts in 12mths