wifes IVA-how will it affect me???

Robbelc

Hi guys, my wife has always been crap with money,to say the least! I have bailed her out before by taking out a £20k loan in my name, but have reached the end of my teather this time. She now ows around £30k! Amazingly Halifax have given her a £9k overdraft, which is totally irresponsable for somebody who earns c£21k!
Im not willing this time to stump up the cash, even though I could loan myself up to the hilt, it aint going to happen. Very little equity in the house either.
So it looks like an IVA is the way to go? Questions are
A) is this likely to have much affect on my excellent credit record. All the debts are in my wifes mane and are mainly cards and the aforementioned Halifax account. I understand the loan in my name will be treated as something that needs to be paid in full?
Is there anyway we could loose the house, even a small chance? We only have around 10k equity in it. Ironically we increased the borrowing last year when we remortgaged to pay off some debts.
c) Our mortgage is with Abbey on interest only, tracker with no tie in. Presumably this will be unaffected, will they be informed of the IVA? Is it ever possable to remortgage with a 'high street' lender when one half has a IVA( that is theoreatically once things return to a more normal mortgage market).
Is there any other 'money mean partners' who are flabargasted by their other halfs spending? She could have at least brought a Porsche or something!!!
Life was so easy this morning!
Thanks
Rob

RAS

Hi

IVAS are not generally a good idea, despite what you see on the TV and newspaper adverts.

Start by reading this http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

If you share any acounts with your wife, then this will affect your credit rating, even the mortgage.

You will have to release half the equity in the house in year 3 or 4 of the IVA. Given that property prices may be moving upwards, are you prepared to do this?

Please speka, both of you to a debt charity - http://www.moneysavingexpert.com/loans/debt-help-plan#help

They may suggest another option instead.

You could also put up a joint SOA so we can see what savings might be made.

As for flabbergasts, there are some people on here who have been shocked by their partner's spending, some who should frankly have realised that their partner was subsidising their joint lifestyle on credit and some who now understand that as a result of various health problems including depression and Bi-polar, they have got into all sorts of debt, plus everything in between.

Get her on here and people can help her find ways of reducing her spending.

Robbelc

Thanks for the reply. My wife has been in contact with the CCCS today who have suggested an IVA. It's not a thing we take lightley, last resort. There is just no other way I can see of getting out of this hole. We will have to face the house equity question when we get there, it's not likely to rise more than £30k in 5 years going on the boom of the last 5. The good thing with an IVA as she can't get anymore debts.

I know my wife's crap with money. It's normal indications are deliverys from catalogs, I get home first so always see them. There have been none. The fact is when I thought the previous action had wiped out her debts she infact owed £10k and have been getting new cards to borrow from to pay the other ones. Her minimum payments are £900 plus the £9k overdraft, all this on a income of £1300 permonth. I can't believe a bank would give out a £8k overdraft. I though my never used £700 overdraft was alot!