www.iva.co.uk

Me and my partner both have an iva and have a joint morgage, what happens if she fails hers? Can we loose the house even if mine is all upto date?

Hi

If she is made bankrupt by her creditors, following failure of her IVA, then it is possible that her equity share would have to be released, this could be a forced sale of the property by the trustee in bankruptcy. They may seek a charging order rather than a forced sale though.

It is not common for creditors to force bankruptcy following a failed IVA so try not to worry

Regards



Regards

Are the IVAs interlocking, or are they entirely separate arrangements? Is her IVA likely to fail, or is your question merely hypothetical, Mark?

Hi melanie, im not sure but a few loans were in joint names so i imagine they are interlocked. My partners iva is hopefully not going to fail. Problem is we have hust received the 3rd income expenditure and am slightly worried as she started a new job 10 months ago and gets more money. However we failed to inform payplan of this. What can we expect? Will they see this as a fail? Kind regards
Mark

Did you both take out the IVAs at the same time, and do you just make one combined payment or are there two separate payments?

I doubt that Payplan will see this as a failure point. Annual reviews are there to capture increases in earnings, but unless the increase was material in comparison to your overall financial circumstances, its declaration can generally be left until annual review time.

Yes we both took out at the same time but pay sepratly. thanks for ur answer

The it does not seem that your IVAs are interlocking - not that that make any difference to your question and my answer, however!

Thank you. One more thing,my daughter starts secondary school in september and will need £2 a day bus fare and £2.50 everyday can i include this in my outgoings?

Definitely - do you feel that this additional expenditure will cause you difficulty with making your ongoing IVA payments at all?

Yes if the payments are not adjusted. So hard with 2 teenage daughters always on the want and having to say no

Try and arrange to have a chat with your IP, to see whether they have discretion to reduce your payments, or whether you would need to place variation proposals to your creditors at a newly convened meeting.

Many thanks mel, i cant beleive all this advice is free, i should of mentioned im with payplan. Are they any good. Does it make a difference who u are with? ARe some companies more leiniant? Thanks mark

Hi

I think some IPs are more understanding than others and in my opinion a smaller company may offer a better customer focus/relationship than the larger companies

Regards

When you complete the new income and expenditure account list the extra income and outgoings as well as cost of living increases. This may mean that there is no adjustment upwards to either proposal and possibly even a reduction may be in order.

Also bear in mind that any new tax credit award will take into account your wife's new earnings so see how they are affected when the new award is issued.

Many thanks for your help