IVA default with DFD - what next??

SuSu1871

Hi everyone - I hope you can help...

I'm writing on behalf of my boyfriend - here's the scenario:

Dec 08 - he & his wife had a joint IVA set up with DFD - total debt £55k
Jan 09 - make first payment, but wife loses job
Feb 09 - they split up and contact DFD to freeze IVA for a few months(agreed)
Jun 09 - boyfriend now living with me, contacts DFD to restart IVA (full payments, including wife's debt)
Jul 09 - payment to DFD leaves boyfriend's bank account
Today - he received a letter to say that he has defaulted and the IVA has been cancelled.

So, what next?

1 - boyfriend gets individual IVA for his share of debt (£37k)
2 - wife on benefits so can she get individual IVA?
3 - wife will probably choose to go bankrupt
4 - as house is in joint names, can boyfriend have bankruptcy (house-wise) AND have an IVA?

OR... could he contact his debtors himself and work to pay off the debt himself (I can advise him if he does this as I've just cleared £27k myself over nearly 3 years)

Understandably, he's confused/angry right now, and I'm on the case to see what the next stages are, hence my post.

I hope you good people can help...

Thank you

thecableguy12

he could just re apply for another IVA at another company

Charco_2

There's a lot to consider in there. It may be best to contact an IP firm and discuss the scenario with them. There are enough companies there who'll discuss this type of thing free of charge.

So, what next?

1 - boyfriend gets individual IVA for his share of debt (£37k) Possible, no reason you can't do two IVA's
2 - wife on benefits so can she get individual IVA? On benefits she may not be able to do an IVA, she is unlikely to have a disposable income to pay contributions with
3 - wife will probably choose to go bankrupt This may be the best option for her but again she'd need to discuss it with a professional. Obviously one insolvency solution would affect the other (how much debt each are responsible for) but the only big issue would be the...
4 - as house is in joint names, can boyfriend have bankruptcy (house-wise) AND have an IVA? It depepends oin the equity. If there is equity in the property it obviously belongs between both of them (regardless of who has paid all the bills). There may be some worthwhile argument with the IP and OR over who owns what percentage but the any equity will have to be addressed. Could be complicated but not unworkable - ask an IP (I'll PM you)