joint debt, ex husband with IVA

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I had joint loans with my ex husband, he took out an IVA 5 years ago. His IVA has now been completed & he is making no more payments. He says the remainder of the debt has been written off, but I recieve correspondance saying the debts are still outstanding & asking me for payments. Can any body please advise?

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  • insider66
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    cazawoman wrote: »
    I had joint loans with my ex husband, he took out an IVA 5 years ago. His IVA has now been completed & he is making no more payments. He says the remainder of the debt has been written off, but I recieve correspondance saying the debts are still outstanding & asking me for payments. Can any body please advise?


    When you take out a joint loan you are "jointly and seperately liable" to pay it. ie you both owe the full amount.
    Your ex's responsibility to the loans has been legally completed due to his IVA - unfortunately your liability hasn't.
    Sorry this is not what you wanted to hear.
  • RAS
    RAS Posts: 32,783 Forumite
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    How on earth was he allowed to take out an individual IVA on a joint debt?????????????
    The person who has not made a mistake, has made nothing
  • MIVAA
    MIVAA Posts: 124 Forumite
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    Hi Ras,

    cazawoman's ex-husband, had a 'joint & several' liability to the joint debt, just as cazawoman does.

    This means that both people have a responsibility to repay the full amount of the loan, in the event that the loan falls into default.

    cazawoman's ex-husband discharged his liability to the loan through his IVA as he was required to do.

    This means he will have paid off as much as he could reasonably afford to all his creditors, including the joint debt, by an amount equal to his IVA's total dividend, after the costs have been taken.

    For example: If cazawoman ex has repaid 25% of his total debt of lets say £30,000 via his IVA, of which £10,000 was the joint debt, then cazawoman will have to find the remaining £7,500 through her own resources, using her preferred repayment method.

    If, however, cazawoman's ex was able to repay 50% then cazawoman would have to find £5,000.

    But cazawoman is still liable for the outstanding amount, and will need to deal with it.

    Either cazawoman can repay the remainder of what was a joint debt, but is now her sole debt, by trying to negotiate a settlement figure with the creditor (which can be very successful if she has a lump sum at her disposal), or cazawoman can seek help through a DMP to make reduced repayments, or even, if her circumstances are suitable, propose an IVA of her own.

    I hope this helps.

    MIVAA
  • Dr_Hook
    Dr_Hook Posts: 509 Forumite
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    Exactly - IVAs are Individual Voluntary Arrangements. Only one person can enter into an IVA, 'joint' IVAs are in actuality 2 separate, interlocking arrangements - each arrangement is conditional upon the other and they are administered jointly for convenience. This is why in joint IVAs each debtor has their own proposal.
    Proud to be dealing with my debts - DFW Nerd #491
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