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More Double Jeopardy

edited 30 November -1 at 1:00AM in IVA & DRO
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roystonvaseyroystonvasey Forumite
2 posts
edited 30 November -1 at 1:00AM in IVA & DRO
thanks for the last replies, yes the Overdraft was included in the original IVA, my question is that it shows as the full amount on both our listed debts, the original bank account was a joint account and the IVA company has stated that because it was a joint account, the bank can show the full debt against both of us instead of just one of us or half each.
What further concerns me is that originally the o/d debt was on my wife's list and without this o/d showing on my list my debts were too low to enter an IVA, I suspect, maybe wrongly, that I may have been "mis sold" the IVA. Am I making sense? Any thoughts anyone?

Replies

  • Hi,
    Yep i see what you are saying now:o Looking at our IVA paperwork our joint debts are listed in full on both mine and the Mrs proposal's but there is an asterix next to them and a footnote explaining the debts are joint and as such the creditors will get so much from my proposal and so much from the Mrs proposal.
    So it appears it may well be normal practice although i don't really know.
    As you may have read i backed out of our IVA and opted to stay on our DMP whether that was the correct decision only time will tell.:confused:
  • coolcaitcoolcait Forumite
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    Hiya

    I'm not sure how payments are made to creditors in an IVA :confused: . I can tell you how it works in a Scottish Trust Deed - and maybe someone else can say if that sounds like the way it works for IVAs too.

    Someone who is in a protected trust deed (PTD) will be expected to pay into the PTD - either through contributions only, through equity release only, or through a mixture of the two (not to mention any windfalls in the course of the PTD etc).

    That money sits in an account until the end of the PTD. At that point, the trustee checks how much he/she has paid out (notice in the Edinburgh Gazette; any audit fees for the Accountant in Bankruptcy; etc), and how much he/she will be claiming in fees.

    That money comes out of the PTD account, and goes into the trustee's pocket (sorry business account!).

    Anything that's left (often not very much) gets split among the creditors on a pro rata basis.

    At this point, it should be the trustee's responsibility to make sure that the creditor who is owed £5,000 jointly by Mr & Mrs X only gets £5,000 in total, and that they get it in a way which doesn't prejudice the rights of any other creditors.

    The logical way to do this (IMO) is to pay half of the debt from Mrs X's trust deed, and half from Mr X' trust deed. Which suggests that the logical thing to do would be to split the debt in half at the beginning :confused: .

    However, I fully accept that 'logic' and 'trust deeds' are concepts which make strange bedfellows :rotfl:

    At the end of that ramble, my point is that your monthly contributions to your IVA are almost certainly not being split up among your creditors each month - so the bank will not be getting a double payment each month.

    If you get a copy of the accounts at the end of the IVA (if you don't, then ask for a copy) I'd recommend that you check carefully that the overdraft isn't being paid off twice.
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