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Rents19
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by Rents19 » Sat Sep 30, 2017 9:05 pm
I entered into an IVA this July however I failed to disclose a joint loan with my ex wife that she has independently being paying three and half years herself with no issues and due to finish in 17 months.The bank in question were made aware of my insolvency and have no issues so long as she continues to make repayments as normal however my debt management firm have had to include this as part of my IVA but are now claiming at the end of the term of the loan my ex wife can make a counter claim against me and become one of my creditors even though she services this debt without problem..my problem is as a creditor she will receive annual statement of my affairs which should be my own business and I feel like changing to a DMP as I can legally exclude this debt that has no direct effect on me,I feel this debt could have been excluded under special circumstances anf feel short changed she will have to know about my financial affairs and I really feel like I should have chosen a DMP,my debts amount to 17k and the joint loan balance is 4500,I realise it would take longer to pay and the implications but feel very strongly on this but how would I change to a DMP should I wish to pursue this and what would happen to the Council tax in the IVA that they FORCE you into arreas with by making it part of the IVA even though it should be a priority debt as obviously I've not paid it since June as instructed so would I be billed for the missed months
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kallis3
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by kallis3 » Sun Oct 01, 2017 8:07 am
If your arrears were included you will not. have t.o pay them but. any accrued afterwards will need to be sorted by you and you may find that next year you will not be able to make monthly payments and will be billed for the whole lot at the start. Are you paying it now?

As regards the loan, I'm afraid you are both jointly and severally liable for the debt.. As a creditor she should only be told about payments and will not know your financial affairs.

Also, you may find you are worse off with a DMP as interest and charges could be added on and council tax arrears would need to be paid unless you came to an arrangement with them.
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Foggy
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by Foggy » Sun Oct 01, 2017 8:31 am
In a DMP you would still be liable for the joint debt, should she, say, decide to stop paying it. In the IVA you are protected from such an outcome. As Kallis says, IF she becomes a creditor, she will ony be privvy to what is in the proposal document. I do not believe she will get a full statement of affairs ( maybe an Industry Expert will comment on this during the coming few days).

You could stop the IVA by failing it, usually by missing three payments, but there would be no guarantee that the creditors would co-operate in a DMP. They would also be free to add back lost interest and possible charges and the debt could increase. I believe, also, that the unpaid CT would then be regarded as arrears as the debt would no longer have the protection of the IVA.

Regarding the joint loan, at the end of the day, you both took out this loan and are both responsible for it's payment between you. If she regards herself as a creditor for your half of the debt which she is paying there is no getting away from it .... I do wonder , though, whether it is permissible to let sleeping dogs lie as she has voluntarily taken the debt upon herself prior to the IVA even being considered (Maybe an Industry Expert could shed some light on this aspect too).
Rents19
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by Rents19 » Sun Oct 01, 2017 12:08 pm
When we broke up in early 2014 we amicably agreed she would service that debt and I'd service the rest she still services this no problem.The council tax I have no arreas on I paid up until the point I was told to stop by IP then they included the rest of this years in the IVA,im 3 payments in but now looking at it as if I'd have done DMP id have knocked 4500 off the debt which she services,it was largest debt for conservatory many years ago 17 months left the CT would not be an issue was always up to date and paid on the time and the overdraft I could have left for the end to deal with so a DMP would be 7000 less to deal with
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kallis3
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by kallis3 » Sun Oct 01, 2017 12:18 pm
Usually you are allowed to continue your Council tax as it is a priority debt, and if not in arrears you should have continued to pay it as normal.

DMP or IVA you are both still liable for the joint debt so if she didn't pay they would chase you.
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Foggy
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by Foggy » Sun Oct 01, 2017 12:26 pm
kallis3 wrote:
Usually you are allowed to continue your Council tax as it is a priority debt, and if not in arrears you should have continued to pay it as normal.

DMP or IVA you are both still liable for the joint debt so if she didn't pay they would chase you.


There have been court rulings in the recent years that put CT into the IVA, being a debt due on the 1st April each year and allowed to be paid, in arrears over 10 months, at the councils discretion. My own thoughts are that this causes more problems than solves and many firms still leave it out, I understand.
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kallis3
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by kallis3 » Sun Oct 01, 2017 12:32 pm
Right -I wasn't aware of that.
Rents19
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by Rents19 » Sun Oct 01, 2017 12:40 pm
Ive argued with PayPlan until I'm blue in the face about CT why I'm giving them the extra 77.00 when it should be classed as a priority debt included in your expenses and should have been allowed to pay it direct to the council,they tell me it's law it has to go into the IVA and explained the same reasons everyone else has said I've asked about this but however you look at it its forcing an extra uneccessary debt onto people like me that have always paid it on time not to mention the council won't even receive but pennies from it unlike the debt company who will benefit a lot more..Ludicrous decision
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kallis3
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by kallis3 » Sun Oct 01, 2017 1:24 pm
I was with Payplan, admittedly a few years ago, but my tax was allowed. Email your IP directly and see if you can get an answer that way.

I wonder how long it will before they do it with utilities and insurance>>>

I think it's wrong.
Rents19
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by Rents19 » Sun Oct 01, 2017 2:36 pm
Sadly I tried,they ain't having it - Based on what info I've provided is therefore a DMP a better option considering I'd be knocking at least the joint loan out the equation at 4500 and re set up my council tax not to mention save on the insolvency fees or to continue with the IVA
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kallis3
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by kallis3 » Sun Oct 01, 2017 2:40 pm
As previously said - there is no guarantee interest and charges will be suspended so you could end up owing more, also your creditors are free to chase you again.
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Foggy
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by Foggy » Sun Oct 01, 2017 2:56 pm
Rents19 wrote:
Sadly I tried,they ain't having it - Based on what info I've provided is therefore a DMP a better option considering I'd be knocking at least the joint loan out the equation at 4500 and re set up my council tax not to mention save on the insolvency fees or to continue with the IVA


Personally I would prefer the greater degree of certainty with the IVA. I have played with fire before and have the scars to show for it to this day. But, at the end of the day, it is your decision to make and nobody else's.
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