Recent;ly Seperated Husband Doing Iva - Help!

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My husband has recently lest me an dour 2 kids and moved in with another woman. I have a loan (only started in jan 09) for £9000 with Lloyds who we also have our current account with. We have a joint loan of £18000 with Tesco (started Sept 08) and my husband has a lloyds loan of £19000 (the 1st payment has not even been made yet). We are also overdrawn by £3500. Total debt £49500.

My husband has announced that he is going down the IVA route to clear all debts in his name plus joint name. Leaving my loan and the overdraft which he says is down to me to sort. He has told me that he is going to freeze our current account. Will I be able to get a new current account in order to have my wages/tax credits paid into and to pay household bills etc. Should I act now before the freexe takes hold. How will the IVA impact on our joint mortgage, is he putting our home at risk if he defaults?

I am in a panic as just a month ago although I knew we were seriously in debt we had never defaulted on a payment and I believed we were happy. How am totally stressed out and worrying about providing for the children.

Any advice, suggestions would be greatly appreciated.

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  • RAS
    RAS Posts: 32,796 Forumite
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    Hi

    The problem is that joint debts fall to you both, jointly and severally.

    With respect to an IVA, you need to insist that your husband speaks to one of these debt charities for advice and you need to speak to them yourself. If the house is jointly owned you may be required to agree to the terms of the IVA and you need advice on this.

    See
    http://www.moneysavingexpert.com/loans/debt-help-plan#help

    The debt charities may not tell you this but personally if he really really wants an IVA, then you should refuse to co-operate unless you have attended joint meeting with a debt charity. There are a lot of sharks out there and the normal way out of a failed IVA is bankruptcy.

    Because you have joint accounts, you need to severe all financial ties immediately, as his actions will affect your credit rating.

    Ask the bank to insist on both signatures on all transactions immediately. You can open a separate basic bank account without a credit check, although one for which you need a credit check would be nicer.

    Ring all the benefits and let them know the new account number - they can even make alternative arrangments so that the next payments do not go into the closed account.

    Also check what extra benefits you can get - single person's council tax relief, working tax credit, housing benefit, child tax credit etc.
    The person who has not made a mistake, has made nothing
  • Cash_Waster
    Cash_Waster Posts: 204 Forumite
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    TLF1970 wrote: »
    My husband has recently lest me an dour 2 kids and moved in with another woman. I have a loan (only started in jan 09) for £9000 with Lloyds who we also have our current account with. We have a joint loan of £18000 with Tesco (started Sept 08) and my husband has a lloyds loan of £19000 (the 1st payment has not even been made yet). We are also overdrawn by £3500. Total debt £49500.

    My husband has announced that he is going down the IVA route to clear all debts in his name plus joint name. Leaving my loan and the overdraft which he says is down to me to sort. He has told me that he is going to freeze our current account. Will I be able to get a new current account in order to have my wages/tax credits paid into and to pay household bills etc. Should I act now before the freexe takes hold. How will the IVA impact on our joint mortgage, is he putting our home at risk if he defaults?

    I am in a panic as just a month ago although I knew we were seriously in debt we had never defaulted on a payment and I believed we were happy. How am totally stressed out and worrying about providing for the children.

    Any advice, suggestions would be greatly appreciated.

    As said above you dont have to cooperate with an IVA which will make it very difficult for him. I imagine he wont be allowed one either without investigation as to why he/both off you have taken out loans and then deciding to walk away. I would imagine his 19000 without a payment on would be classed as fraud as it looks like he had know intentions of paying it back. The joint one will also come into question legally if you took it out knowing that you were having difficulties and only payed six months off with no defaulted payment, you should be able to service the debt jointly?

    Just a thought not a blame, get your own account set up asap and ask them to freeze the other accounts. When this happened to my mum, the banks where very quick to "freeze" "Hold" accounts and instantly required to signatures for any joint withdrawals
  • newlywed
    newlywed Posts: 8,255 Forumite
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    OH's ex went into an IVA when they had a joint loan - he wasn't notified or anything until after it was all agreed. He never had any opportunity to make things difficult :confused:

    The joint loan now all falls to him. Originally the Insolvency Practitioner told him 30% would be paid by the IVA over 5 years. Now suddenly she isn't on an IVA any more (after 18 months) and nothing will go off the joint loan so it all falls to OH.

    We can't even find out for sure if she failed the IVA or paid it off or what :confused:
    working on clearing the clutterDo I want the stuff or the space?
  • RAS
    RAS Posts: 32,796 Forumite
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    newlywed

    Have you checked the Insolvency Register?

    Alos loans are a different matter to property and this guy will have to release any equity in the house.
    The person who has not made a mistake, has made nothing
  • newlywed
    newlywed Posts: 8,255 Forumite
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    RAS wrote: »
    newlywed

    Have you checked the Insolvency Register?

    Alos loans are a different matter to property and this guy will have to release any equity in the house.

    Yes - it no longer appears on the insolvency register - nor does any bankruptcy.

    Sorry didn't realise about the property making a difference - OH had no mortgage/property.
    working on clearing the clutterDo I want the stuff or the space?
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