Offering a F & F & variation questions!

[h.o]

Only the two that were mentioned as they were joint bank accounts with Nationwide and HSBC.

The amount outstanding on my wife's IVA is just under half what was owed to Nationwide & HSBC.

I should also point out that MAXrecovery seem to "own" most of our debt now, although I don't think that includes these two.

Edited to add:

I thought I should point out that there is nothing in the IVA proposals or chairman's report that refers to the above as a joint debt and I can find nothing that says they will be treated in any special way.

[MelanieGiles]

Your joint creditors will therefore get an individual dividend from each estate, so your wife's proposed settlement needs to take account of these debts in full, as does yours under the principle of joint and several liability.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[h.o]

Your joint creditors will therefore get an individual dividend from each estate, so your wife's proposed settlement needs to take account of these debts in full, as does yours under the principle of joint and several liability.

So we would need to offer close to 71p in the £1 on half of her liability plus take into account her outstanding payments as mentioned above?

Is that what you mean?

[MelanieGiles]

No - she needs to include her own individual creditors and the joint creditors in her settlement. I am not sure what that will make her offer stand at, but the joint creditors will then prove in your IVA for the full amount as well and eventually receive a further dividend from that.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[h.o]

OK.

Thank you Melanie for your help so far!

Just to be clear, her only sole liability was £700, so surely the £9000 odd of payments outstanding take into account her joint liabilities?

[MelanieGiles]

Payments outstanding relates to the number of payments she is yet to make to her IVA. This has bears no relation to the level of her debts, or am I missing something?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[h.o]

No I think it is me!

I was thinking she was liable for 1/2 the joint debt (c. £10k) and if she was thinking of offering a F & F it would need to be based on her sole liabilities + 1/2 the joint liability which is only around £12000 in total.

Given the payments she has already made and assuming some costs have been added I assumed that the £9000 in payments she had outstanding accounted for her joint liability if you see what I mean?

I assumed then that the other 1/2 of the joint liability (the other £10k) is looked after via my arrangement.

[MelanieGiles]

No - with joint liabilities you are both responsible for the whole debt - so these creditors get two bites of the cherry hypothetically speaking. Your partner's offer must include her personal debts and the full level of joint debts not half.

Hope this still makes the offer viable.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[h.o]

Thanks Melanie, now I understand.

I will ask my IP today to double check if our IVA's are interlocking and what they consider a suitable offer for my wife's.

Anyone have any thoughts on my variation?

[MelanieGiles]

I imagine that you are going to want to keep paying your payments, albeit at a lower affordable level. If so, you need to work out the level of your current disposable income, and discuss the prospect of variation with your Supervisor.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp