Finished my iva - do I need to contribute to my husbands?

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claire253
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by claire253 » Sun Jul 01, 2018 9:15 am
I’m now at the end of a 6 year IVA (final payment made on Friday 😊), my husband’s IVA has one more year to go (one creditor at the outset insisted that he did 7 years). Our IVAs, whilst individual, do rely on one another financially to operate. I spoke with our IVA practitioners earlier this month as received a message to call them, they confirmed my IVA was due to come to an end, I then questioned what happened as my husband’s IVA continues for another year. The answer was he would be expected to pay an additional amount of X, when I asked why I was told this was half of my IVA payment, which would be a surplus because I would no longer be paying my IVA payment and that the creditors would expect this. So not only have I made 6 years worth of payments, I’m now being expected to pay for a further 12 months under the guise of my husband’s creditors would expect it, is that correct? Any advice would be greatly appreciated. Thanks
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Foggy
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by Foggy » Sun Jul 01, 2018 9:40 am
In theory your finances are your own and, in most cases you would not be expected to contribute towards your husbands debts -- it is your money not his and his disposable income has not increased. However, this will depend upon how inter-dependant your IVAs were and who your IP is. Payplan, for instance, work on household income and do expect a solvent spouse to contribute on the, rather high handed, assumption that both partners have benefitted from the funds making up the debt (you both sit on the sofa, so you both pay for it). It is not a creditor expectation (unless the seed has been planted) but a firms policy.
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claire253
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by claire253 » Sun Jul 01, 2018 11:40 am
Thanks for your reply, we are with Payplan and your response makes sense as when I pushed for a clearer response on the “creditors would expect it” comment the person I was speaking with wouldn’t elaborate further. I could understand it if the creditors would see a good proportion of this, however, going by our annual statements Payplan take a good cut of what has been paid in before making disbursements!

Foggy wrote:
In theory your finances are your own and, in most cases you would not be expected to contribute towards your husbands debts -- it is your money not his and his disposable income has not increased. However, this will depend upon how inter-dependant your IVAs were and who your IP is. Payplan, for instance, work on household income and do expect a solvent spouse to contribute on the, rather high handed, assumption that both partners have benefitted from the funds making up the debt (you both sit on the sofa, so you both pay for it). It is not a creditor expectation (unless the seed has been planted) but a firms policy.
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plasticdaft
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by plasticdaft » Sun Jul 01, 2018 3:28 pm
I would ask them to review what you have as available income and make sure your figures left little spare!!!

Bit of a scam that you have to pay half of what your payment was, clearly you wouldnt have had to if hubbys creditors didnt insist on 7 years.

Did you expect this from the start, was it explained to you that you would have to?

Paul
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SteveUK
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by SteveUK » Mon Jul 02, 2018 2:14 am
That's very strange as our IVAs were with payplan, my wife's finished last year and they said that only 20% of her income could be used in the calculation of my payments for the final year. Does the contribution they are expecting from youi come to more than 20% of your income?
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claire253
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by claire253 » Mon Jul 02, 2018 2:38 pm
Yes I insisted on completing an Income & Expenditure form as the one we did last year was paired back in all areas to effectively make it work, which caused us to struggle immensely but we were so close to the end we didn't make a fuss. The only reason for the 7th year was one creditor (which was for a joint debt - and the only one and not one of the biggest debts!) insisted, as far as we know all other creditors were fine with 5 years with the option of year 6 if no equity could be released against our property. Whilst I understand our IVAs are separate I think they are "interlocked" in order for them to work, but having read up on this term, interlocking IVAs should also be for the same length of time.

This was not explained to us at all, at any point. When we were asked to look at releasing the equity in the property in the early part of year 5, which didn't work, we asked 3 different people at Payplan what would happen at the end of my IVA as my husband's would continue, answers were not to worry about it because as long as I continued to receive the same salary all would carry on as normal for his final year.

I just don't trust their reasoning's behind wanting 50% of what would have been my monthly IVA payment!


plasticdaft wrote:
I would ask them to review what you have as available income and make sure your figures left little spare!!!

Bit of a scam that you have to pay half of what your payment was, clearly you wouldnt have had to if hubbys creditors didnt insist on 7 years.

Did you expect this from the start, was it explained to you that you would have to?

Paul
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claire253
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by claire253 » Mon Jul 02, 2018 2:50 pm
They didn't even ask what my salary was for this final year, my husband is only now completing an Income & Expenditure sheet for his final year because I pushed for it. So as far as I'm aware they are expecting to use 100% of my salary. To be fair, as my husband is self employed, without my salary being taken fully into account his IVA would fail, which we don't want at this late stage! The additional payment they want from my husband on top of his current monthly payment equates to what would have been 50% of my IVA payment.

SteveUK wrote:
That's very strange as our IVAs were with payplan, my wife's finished last year and they said that only 20% of her income could be used in the calculation of my payments for the final year. Does the contribution they are expecting from youi come to more than 20% of your income?
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Foggy
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by Foggy » Mon Jul 02, 2018 3:13 pm
claire253 wrote:
They didn't even ask what my salary was for this final year, my husband is only now completing an Income & Expenditure sheet for his final year because I pushed for it. So as far as I'm aware they are expecting to use 100% of my salary. To be fair, as my husband is self employed, without my salary being taken fully into account his IVA would fail, which we don't want at this late stage! The additional payment they want from my husband on top of his current monthly payment equates to what would have been 50% of my IVA payment.

SteveUK wrote:
That's very strange as our IVAs were with payplan, my wife's finished last year and they said that only 20% of her income could be used in the calculation of my payments for the final year. Does the contribution they are expecting from youi come to more than 20% of your income?


Payplan do play by their own rules on occasion but, it does happen across the industry that a solvent spouse's income is used to prop up an otherwise unworkable IVA for the insolvent spouse. However, this is generally a matter of some discussion and explanation at the outset.
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