Do I have to disclose this information ?

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amanda.th

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Post by amanda.th » Thu Sep 23, 2010 11:10 pm
I currently have an IVA that has 2 years left to run (debt run up in previous relationship). I am paying it back and have no arrears. I am about to get married, my new wife has significant earnings & a property and I am worried the amount I'm paying will be affected by this. Do I have to disclose this information or can I keep our finances seperate - currently I am paying 'rent' into her account.
 
 

Lisa2009

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Post by Lisa2009 » Thu Sep 23, 2010 11:24 pm
Hi and welcome.

I believe as a married couple you would be both expected to pay your fair share towards the household expenses based on both your earnings.
i.e if you only brought home 40% of the household income then it would usually be expected that you pay 40% towards the household.

Your I&E would need to be assessed again as this would probably free up a little more of YOUR income to pay towards your IVA.
Apart from household expenes, the rest of your wifes earnings would be hers to do with as she pleased.

I hope this helps
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Broke of London

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Post by Broke of London » Thu Sep 23, 2010 11:47 pm
Lots of people prefer to split bills 50/50 and it is unfair if the iva doesn't allow for this. Even though it is our income going into the iva it is the other half's indirectly as they are subsidising us and so have less disposable themselves. I'm the lower earner too and I don't want to share responsibility for my debts with the light of my life either.
 
 

kallis3

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Post by kallis3 » Fri Sep 24, 2010 8:51 am
Your partner shouldn't suffer at all. You just need to prove that you are both paying your fair share into the household accounts. If your partner pays more then that may free up some disposable income for you to pay across to your IVA.

Your wifes disposable income is hers to spend as she wishes.
Sharing from experiences of dealing with debt
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size5

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Post by size5 » Fri Sep 24, 2010 9:10 am
I have to slightly disagree with you there broke of london. IVA's are by nature a fair deal between debtor and creditor, and therefore someone paying half of the household bills with a third of the income would be directly penalising his or her creditors out of choice.

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Adam Davies

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Post by Adam Davies » Fri Sep 24, 2010 9:30 am
Hi
I agree with Size 5
The fairest way is to look at joint income and expenditure and then any disposable income should be split in the same ratio as income. So if the non IVA partner earns 60% of the income they keep 60% of the disposable income.
Sometimes if couples have been together for a number of years creditors may seek some of the partners DI as they may feel that all parties have benefited fron the credit, even though it is just in one persons name
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Michael Peoples

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Post by Michael Peoples » Fri Sep 24, 2010 9:57 am
I think cases have to be looked at individually. If Amanda is paying a fair rent this is reasonable and I do not believe the new partner should be in any way penalised. It can be argued that there is a difference where there is a long term relationship pre IVA but post IVA partners have no liability to the IVA or the debts.

There is also the issue of Amanda acquiring an interest in the new property if Amanda is contributing towards the mortgage,upkeep etc and in the event of the IVA failing and a subsequent bankruptcy, a Trustee may try and make a claim against the new wife's property.

Personally, I think a reasonable monthly rent figure is fine but I do agree that where a couple are together pre IVA, it is necessary to do a joint I&E.
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orange

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Post by orange » Fri Sep 24, 2010 2:35 pm
this may rock the boat.but why should the income of the wife(to be) be taken into account...dont seam fair she didnt run up the debt?.!Doesnt encouraged the guy to tye the knot does it !
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kallis3

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Post by kallis3 » Fri Sep 24, 2010 2:46 pm
It's mostly to make sure that both parties are paying their fair share across to the household expenses. That way the IP knows exactly how much DI the person in the IVA has.

If the new partner is post IVA acceptance then their disposable income is theirs to do with as they will.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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orange

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Post by orange » Fri Sep 24, 2010 2:54 pm
not sure i totally agree....what if the guy doesnt want the wife to be to know does he after tell? im think more worried !!than hiding stuff.are there any rules to protect the guy
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kallis3

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Post by kallis3 » Fri Sep 24, 2010 3:12 pm
I think it is far better to be open about these things in a relationship. We couldn't have got to where we are now without supporting each other.

It would always be at the back of my mind that he would find out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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lukeofyorkshire

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Post by lukeofyorkshire » Fri Sep 24, 2010 3:19 pm
It's a hard one as I can see it from both sides. Creditors want and deserve as much money back as possible.

I know of the financial arrangments of about 20 couples and only one doesn't split the bills 50/50 (That is my younger Brother who earns about 80k a year, yes I hate him lol and his partner earns about 20k). I could see many people refusing to move in with a partner if they had to say pay 60% of the bills as they would feel why should they subsidise their partner's pre-relationship debts.......

Both sides have valid points. I love a good 'debate' [:D]
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orange

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Post by orange » Fri Sep 24, 2010 3:23 pm
so to set of a discussion
if the iva is running you meet someone fall in love,decided to get married....and say ive got an iva...and youve gotta pay towards it? after the wedding .not sure id wanna be gettin married after all.
i do agree on the support bit though tough times x and dont get easier but you learn lots and lots x
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Broke of London

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Post by Broke of London » Fri Sep 24, 2010 7:01 pm
It all depends on your interpretation of fair. If bloke and Broke split bills according to "fairness" he would pay about 80%. You cannot force someone to split bills "fairly" and then say the non-IVA partner can keep their disposable income...they can't because the IVA is forcing up their expenses.

Although in my situation, if we were to do a joint I&E I would become jointly responsible for repayments on a £40k BMW and a second house by the sea so my expenses would rocket. I expect in this situation creditors would find it more agreeable for me to pay rent and a 50/50 split on bills for the main home???? They do like to have their cake and eat it!
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