IVA Overpayment

Pinkylouloubell

Hi,

I need some advice from you guys.

Me and my ex partner got into quite a bit of debt and are trying to pay this back as best we can.

He is in an IVA which includes 2 accounts in joint names for myself with Halifax
One loan = approx £8000
One current account = approx £2500

I am paying monthly amounts towards this as I am on a DMP.

These are both included in his IVA.

My question is that if I carry on paying these until the balance reaches £0, then they will also receive a lump sum from his IVA at the end of his 5 year term and there will actually be quite a bit of money we have paid them over what we owe them

They have said to me however that I cannot just stop paying after 2-3 years, even though they know they will be receiving his lump sum payment after the end of the IVA??

Does anyone know where I stand on this??

I obviouslydont want to over pay them and expect problems trying to claim any money back off of them between me and ex partner.

Please help.

thecableguy12

Pinkylouloubell wrote: »

Hi,

I need some advice from you guys.

Me and my ex partner got into quite a bit of debt and are trying to pay this back as best we can.

He is in an IVA which includes 2 accounts in joint names for myself with Halifax
One loan = approx £8000
One current account = approx £2500

I am paying monthly amounts towards this as I am on a DMP.

These are both included in his IVA.

My question is that if I carry on paying these until the balance reaches £0, then they will also receive a lump sum from his IVA at the end of his 5 year term and there will actually be quite a bit of money we have paid them over what we owe them

They have said to me however that I cannot just stop paying after 2-3 years, even though they know they will be receiving his lump sum payment after the end of the IVA??

Does anyone know where I stand on this??

I obviouslydont want to over pay them and expect problems trying to claim any money back off of them between me and ex partner.

Please help.

I was looking at the debts you have listed below your avatar can you not do an iva as well then there will be no over paymnet as you will pay a lower dividend

Nick700

Good afternoon,

What should happen in theory is that you keep paying the debt to Halifax in a DMP, Halifax will receive a dividend under the IVA, they deduct that from their debt and then you just have to pay the remainder, so you are not overpaying the debt.

You just need to keep on top of knowing what payments Halifax are receiving under the IVA by way of dividends and ensuring that they are deducted from the debt you owe in full, so you will not be overpaying any debt.

If you can pay your debt off in full within 5 years(by way of your own payments and dividends from partner's IVA), then there is no need to enter an IVA. However, if it will take significantly longer than that, then an IVA is maybe something you should consider. If you think it may be something you should consider, then you should contact your partner's Insolvency Practitioner for advice regarding this.

Hope that helps.

Nick

Pinkylouloubell

thanks for your replies.

I havent changed the avatar at the bottom since we split up and the debts listed are the joint debts.

I actually owe

Halifax Current sole £500
Halifax Current Joint £2400
Halifax Loan Joint £8000

Total £11000

At the rate I pay, £121 per month, it will take me 90 months to pay off the debt = 7.5 years.

As far as I know his IVA runs for 5 years, so hopefully by then his dividends at the end of the 5 years will pay off the balance.

Does that make sense or am I talking gobble de goop???

Thanks

PS will change avatar,