Can a joint debt that was included in my completed IVA still be chased up ?

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claire493
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by claire493 » Mon Nov 13, 2017 3:57 pm
I had an IVA from March 2012 which ended in March this year and I now have my completion certificate. One of the debts was a credit card in both mine and my husbands name and they have sold that on to Arrow Global and he's had a letter chasing him from Capquest. This debt is now 6 years old and it was part of my IVA, can they chase him for it.
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Foggy
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by Foggy » Mon Nov 13, 2017 4:00 pm
Yes they can -- as it was a joint debt, you are free of it due to your IVA but he is solely responsible for it now.
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claire493
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by claire493 » Mon Nov 13, 2017 4:20 pm
Foggy wrote:
Yes they can -- as it was a joint debt, you are free of it due to your IVA but he is solely responsible for it now.


Thank you for your response, however the debt is 6 years old now so can they even chase it at this time?
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Lisa Thomas
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by Lisa Thomas » Mon Nov 13, 2017 4:23 pm
If they have not chased him within 6 years he might be able to argue it is statute barred.
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claire493
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by claire493 » Mon Nov 13, 2017 4:28 pm
The original debt was with MBNA and they have sold it on to Arrow Global of which I was never informed about and I thought that once the IVA was completed the debt is classed as settled as they have received payments during my IVA yet they are chasing for the original amount.
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Foggy
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by Foggy » Mon Nov 13, 2017 4:35 pm
A joint debt passes to the solvent debtor who becomes responsible for it's payment in full, less dividends made from your IVA. but plus interest and any charges due. I would query whether it is statute barred as the debt would have been acknowledged within the IVA and with every dividend payment.
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Lisa Thomas
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by Lisa Thomas » Mon Nov 13, 2017 4:50 pm
Your responsibility is settled due to the IVA - the joint party's liability is not - they are jointly and severally responsible for the balance of the debt.
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Lisa Thomas
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by Lisa Thomas » Mon Nov 13, 2017 4:51 pm
Foggy wrote:
A joint debt passes to the solvent debtor who becomes responsible for it's payment in full, less dividends made from your IVA. but plus interest and any charges due. I would query whether it is statute barred as the debt would have been acknowledged within the IVA and with every dividend payment.


Legally Foggy should they have written to the joint party to acknowledge any balance?
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claire493
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by claire493 » Mon Nov 13, 2017 5:00 pm
Lisa Thomas wrote:
Foggy wrote:
A joint debt passes to the solvent debtor who becomes responsible for it's payment in full, less dividends made from your IVA. but plus interest and any charges due. I would query whether it is statute barred as the debt would have been acknowledged within the IVA and with every dividend payment.


Legally Foggy should they have written to the joint party to acknowledge any balance?


My husband has never had any communication from them since starting the process of my IVA which is six years ago, during the time of my IVA he has had no communication from them at all so surely they can't come for it now? Just when I think this is all over and behind us it rears its ugly head. My IVA was a very bad time in my marriage and this is really stressing me out.
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Foggy
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by Foggy » Mon Nov 13, 2017 5:03 pm
Lisa Thomas wrote:
Foggy wrote:
A joint debt passes to the solvent debtor who becomes responsible for it's payment in full, less dividends made from your IVA. but plus interest and any charges due. I would query whether it is statute barred as the debt would have been acknowledged within the IVA and with every dividend payment.


Legally Foggy should they have written to the joint party to acknowledge any balance?


As you mentioned above, Lisa, the joint debt holders are jointly and severally responsible, and I imagine this is covered within the reams of small print issued whern these things are taken out. The creditor would no doubt fall back on the arguement that it is the debtor's responsibility to service the debt, not the creditors to chase it. In theory they should at least have been issuing annual statements, which might hav prompted action, but, as we know, this duty is often ignored once in an IVA.

Although the insolvent debtor has acknowledged the debt via the IVA --- the solvent party has not. It might be thin ice but, as the debt had effectively become his due to the IVA, he might be able to argue statute barring, so it would be an idea not to acknowledge the debt now. But I would counsel taking informed advice as soon as possible. Of course, the efforts put into avoiding this debt might not be justified, depending on the amounts we are talking about here.
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Foggy
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by Foggy » Mon Nov 13, 2017 5:05 pm
Claire, as I mentioned above it might be possible to rely on statute barring ( I am only guessing here), but, just in case, don't acknowledge the debt yet and take some informed advice.
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claire493
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by claire493 » Mon Nov 13, 2017 5:14 pm
Who would be best for me to take advice from in regards to this please? Any issues I had during my IVA I spoke to Payplan but as my IVA is completed now I don't suppose I can ring them.
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Foggy
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by Foggy » Mon Nov 13, 2017 5:20 pm
claire493 wrote:
Who would be best for me to take advice from in regards to this please? Any issues I had during my IVA I spoke to Payplan but as my IVA is completed now I don't suppose I can ring them.


Apparently (going by a recent post) Payplan do not like to assist former clients with issued related to completed IVA's, so probably wouldn't be much help. Although they are at fault as they should really have advised you that this debt would still be outstanding, being a joint liability.

Your Local CAB might be worth a visit, they usually have debt advisors who should be clued up on statute barring.
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claire493
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by claire493 » Mon Nov 13, 2017 5:29 pm
Ok thanks for your advice
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