partners debts from his previous relationship

[helen_]

My partner has debts of around £40,000 and has been on debt management for a few months and has recently been offered an IVA, which sounds better in theory. But they told him they want to do it in joint names with me, I have debts of only £3,900 which i manage quite well.
The debts he has are from his previous relationship.
Do you have to have an IVA in joint names.
This is worrying me.

[Skippy]

I live with my partner and I have my own IVA. He had debts at the time I took this out but was managing and didn't want to go down the IVA route.

Although they are often referred to as joint IVA's, it would actually be 2 separate IVA's and you would make one payment. To be honest (and I'm sure one of the experts will correct me if I'm wrong) I cannot see any benefit in you having and IVA if you only owe £3900.

Onwards and upwards!!!

[hellybelly]

But why did they say it has to be in joint names, why, when i manage my debts well and have no arrears, would it be of any benefit to do an IVA?

And also, if he does have an IVA, will it affect my credit report at all? I have no financial association with him and he has only been living with me for 8 months.

[hellybelly]

By the way Hellybelly is the same person as Helen, i think i registered wrong!!!

[Skippy]

They suggested that to my partner and I as well. It may have something to do with there being more disposable income available and therefore a more attractive offer to the creditors. I have wondered if it would be because they would get double the fees, but then again I am just cynical!

As I said, if you have no arrears and a low level of debt then I really don't think an IVA would be any good for you.

If your partner has an IVA this won't affect your credit rating. If for any reason you do have problems you will be able to apply to the credit agencies to be disassociated from your partner's debts.

If your partner is seriously considering an IVA make sure he talks to several companies, and preferably ones from this site as there are some unscrupulous companies out there. Make sure that the living expenses are realistic, as this is a 5 year commitment. I didn't and I am struggling 4 months in.

One last question - has your partner got any assets? If not, bankruptcy could be worth considering, but again he needs to talk to the professionals.

Good luck to you both and let us know how you get on.

Onwards and upwards!!!

[hellybelly]

No he has no assets, but he can easily afford the payments the debt management place suggested, so bankruptcy is not a path he wants to go down.

I think an IVA would be his best option as long as my name has nothing to do with it, I have always been a careful spender so after only 8 months of being together I don't want all that to go to waste, if he can do it alone.

[Skippy]

It sounds like you are in the same situation as me and my partner. I'm the one with the debts, and there is no reason why he should end up paying.

I can't see any reason why you should have to be involved, but as I said before, speak to some of the companies who post on this forum. My IVA was started by Thomas Charles and they were very good. The initial consultation is free, and if you decide to go ahead they charge you 2 months disposable income. However, if your IVA is rejected you get the money back plus £500.

Onwards and upwards!!!

[hellybelly]

The company he is with now is Byrom and Keeley, does anyone know if they're reputable?

[MelanieGiles]

There is absolutely no need at all for you to propose an IVA if you only owe £3,900 to your creditors and are making the payments properly. What bizarre advice - and I think your creditors would think you had gone made if you did!

It may well be a good idea for your partner, and he should seek specific advice from an insolvency practitioner or debt management company in this regard. There is no such thing as a joint IVA - the "i" stands for individual - so you definately do not want to be involved in this plan.

I have never heard of that Debt Management Company.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hellybelly]

Thank you for that. I appreciate all your advice, and I will show this to my partner when he gets home from work and hopefully he wil ring round a few other companies.

[neverending]

Well done for finding this forum and please use the advice given.
Regards

[jannette92]

You seriously need to shop around. We are in the same position my husband had debts from his marriage. I had a few from mine but not to the extent of his mine came to about £4k which I paid off upon divorce.

I have helped him out as best I could for 2 years but can't do it anymore. We had at least 4 companies that insisted that my income had to be included and we had almost given up.
I eventually spelled it out to him that he had to tell companies that I was not prepared to be involved in his proposal.
He rang a company 20th Dec and told them he was on his own with this and our creditors meeting is 19th Feb.
Shop around until someone accepts him on his own.

[hellybelly]

Ok, so if he goes and gets an IVA on his debts alone, how will that affect me and my credit?

Will it show up at all on my credit report?

[MelanieGiles]

No - even if it does file a Notice of Disassocation at the scoring agencies. Read my latest blog for further details of this.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hellybelly]

Thanks Melanie, I recently applied for a Disassocation on my previous partner, which was done very quickly.

And have just gone for Experians free month trial just to keep an eye on it.