Advice needed on IVA

davidwm

My nephew has recently set-up an IVA to "pay-off" his debts.

He will be getting married shortly. Does anyone know the position on the following.

My father intends to give my nephew around £2k as a wedding gift.

Will this money be taken from him to cover some of the debt or would he be able to keep this to use as my father intended, ie: to purchase something for the home!!

Any advice gratefully received.

MIVAA

Hi David,

Technically speaking he would be obliged to tell his Insolvency Practitioner of the gift, and then pass the money into the IVA.

But this would only be required if he was in receipt of the money i.e. if the money was to be put into his bank account..

If, say, his Grandfather gave the gift to his fiancee, or even to someone else that can be trusted such as yourself, and the money didn't actually reach his bank account, then it wouldn't become his - and in turn his creditors would be entitled to it.

Best to keep it away from him, yet let him have a say in what was bought with the money.

I hope this helps

MIVAA

Charco_2

Gift it to the nephew but through the fiancee (or her bank account at least) and avoid the hassle!

They'll be spending it as a couple anyway I'm sure so it doesn't make much difference... if it comes directly to your nephew then technically he should declare it and may at least have to pay half into his IVA.

There is no issue if it goes to the fiancee.

davidwm

If a cheque is made payable in my nephews name can this be paid into his partners bank account?

Charco_2

Could be paid into a joint account easily.

May be able to be paid in if he signs the back of it - but that type of policy may have changed. He may be able to insist on it if he goes to the bank with ID... do your nephew and his fiancee bank at the same place? That would make it easier!

rosssanderson

My partner is in an iva and one of the debts included in it was a overdraft on a joint account, however the bank is now chasing me for the full amount as well, i am not in an iva. Can they legally do this? And if so, what are my options? Would be grateful for any help.

Charco_2

Unfortunately, that is the nature of a joint acount... if one person is unable to pay, then the bank has the right to chase the other person for the full amount, not just half!

Your partner will - over the course of their IVA - pay an amount off the debt outstanding on the joint overdraft (25p in the £, 35p in the £ etc) You'll be liable for the remaining 75p in the £ or the 65p in the £, or whatever the dividend your partner is offering in their IVA.