Hi, I'm new to the forum. I know these questions may have been answered previously so apologises if this is the case. I haven't had my iva contract through yet so haven't read the small print but can I pick your expert brains? Some background for you....debt is soley in my name, I have a mortgaged property with no equity. In the future what happens if;
1. I receive a pay rise?
2. I receive any bonuses?
3. My boyfriend moves in with me?
4. We marry?
My boyfriend has his own mortgage (with equity) and if he moves in with me it is likely he'll rent his house out. Can the iva touch any of his assests particularly if we marry?
1/ Your income and expediture will be assessed every 12 months so if you get a pay rise some of it may need to go towards the IVA(remembering though that expenditure may go up as well).
2/ Bonus pay should have been discussed directly with your IP as part of the bonus would have to go into the IVA.
3/ If your boyfriend moves in with you,let your IP know and they will probably want to review your expenditure as he would be expected to pay his share of household bills(gas,electric etc etc),so they would need to know about his income.
4/ If you marry its the same as the above.
Any assets that your boyfriend has cannot be touched in your insolvency,even if you marry. They are your debts and not his and he wouldnt be expected to pay anything towards your IVA.
Who is drafting your proposal??
Paul
Last edited by plasticdaft on Sat Jul 17, 2010 12:19 pm, edited 1 time in total.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
If you receive a payrise you would need to inform your IP and it would be up to them if they dealt with it immediately or at your annual review it would appear different companies deal with these things at different stages. Always bear in mind if you have a payrise you may have added expenditure to declare at the same time offsetting some agains the other.
I would imagine you would have a clause for bonuses and windfalls within your IVA.
If your boyfriend moves in with you and you later decide to marry he wouldn't be responsible for your financial situation if he isn't connected with any of your debts. However, he would be expected to contribute to the household expenses etc., therefore leaving you with possible added disposable income that would therefore require paying into the IVA.
His house if it solely belongs to him and has no connection with you is his house, I'm sure it would remain so if you married but do hang around for a professional opinion on these points.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
If you receive a payrise, you are usually expected to pay some of this across to the IVA, but of course don't forget that your expenses go up as well.
Bonuses are usually dealt with by a 10% 50/50 basis. You can keep the first 10% over and above your normal take home salary and then split the rest 50/50 with your creditors.
If your boyfriend moves in then obviously he would helping towards expenses and so that might free up more of your money.
Your boyfriends house should be fine.
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. http://kallis3.blogs.iva.co.uk
Thank you so much for the speedy responses. Grant Thornton are drafting my IVA.
I will check the clauses regarding salary and payrises-thanks.
To be clear, if my boyfriend moves in will the ip just expect to see a fair contribution ie 50/50 split or will they want to know his salary and outgoing etc to ensure he is paying a percentage of his salary?
Thanks again
All of the above points should have been discussed with you at an early stage of the process, as they are very valid questions which are probably asked by the majority of people prior to entering into an IVA.
I think you will find that all of this is ably covered off within the proposal document, but there is no harm contacting your own IP for clarification.
Thank you so much for the speedy responses. Grant Thornton are drafting my IVA.
I will check the clauses regarding salary and payrises-thanks.
To be clear, if my boyfriend moves in will the ip just expect to see a fair contribution ie 50/50 split or will they want to know his salary and outgoing etc to ensure he is paying a percentage of his salary?
Thanks again
Ooops I have somehow reposted the same response.
Thanks Melanie. I may be jumping the gun somewhat and as you said it will probably all be clarified within the proposal. I will ask the same questions to my IP on Monday but just wanted to gain a general opinion from the experts on here. I just don't want my boyfriend penalised because of my debts.
Can I ask another question. Am I right in thinking that we need to have absolutely no financial link between us? He is very keen to get a joint account but I am worried that it will effect his credit rating? Can we arrange a notice of disassociation or should we just avoid anything linking us financially altogether?
You can only file for a notice of disassociation if there is no history of joint credit,even a joint application that is turned down may show up as a financial link.
Has your IP discussed bank accounts yet??
During an IVA you will usually be on a basic no frills account(make sure you open a new account if your current one has links to any of your debts).
I would be tempted to avoid linking your finances at this stage.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I wouldn't recommend a joint account if you have no joint debts. That way his credit record will remain clean.
Agree that you will need a new account asap with someone who is not a creditor.
Co-op Cashminder comes highly recommended, as does the Natwest Step account.
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. http://kallis3.blogs.iva.co.uk
Thanks already sorted the new bank account for myself so that's not a concern.
So in summary then, as long as we have no financial link the IP will only ever want to know how he contibutes to the household (should we move in together in my home) and the effect that will have on my income. They will never want to know his financial status and assets regardless of whether we marry or not as the debts are from before we met and all in my name?
Your partners income will only ever be looked at to ensure he pays a fair share of expenses.
Your IP would probably want to see his pay chits to ensure his income is what you tell them.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
The IP will merely want to ensure that you are not supporting your partner in any way to the detriment of your own creditors. His assets are his own, and he should be paying a fair share towards the combined household finances, which is usually worked out on the basis of your individual earnings. Your IP ought to be able to help out with this.
