Need advice - ex looking at IVA but we have joint debts still

SKM_2

Hi, I'm a newbie on here, but I could really do with some advice.

My ex-husband and I seperated back at the start of September, and have been working out financial arrangements without assistance from outside sources. We have a 1 year old, who lives with me fulltime.

When we seperated, we split the majority of our finances, but kept the joint account as we have a joint loan and joint mortgage on my flat.

We looked into splitting the loan, but at the time it would have cost considerably more to have two individual loans to cover each half, so decided that it made sense for both of us to keep it joint, and he would just pay me his share each month.

The mortgage to the flat remains in both our names, and he has been paying his half of this. Although I think I could possibly afford the payments to cover it all myself, I don't think I'd be lent enough on my own to buy him out. Unfortunately selling doesn't seem to be an option either, as two other flats in my building are also up for sale and have been for well over a year now.

Anyway, things were working fine for me until yesterday. He arranged a standing order to the joint account to cover his half of the debts, plus some maintenance for our son.

Yesterday he told me that he's really struggling financially, is in discussions with a debt management charity, and is looking at going down the IVA route. He asked to reduce his payments to me, which I've worked out that I can just about afford to bear, so that shouldn't be a major problem, but my concern is regarding the joint debts, the IVA and my credit rating.

I can't get to the CAB for advice till later in the week, so I was hoping someone would be able to tell me where we stand regarding these. If he does go down the IVA route, will that screw up my credit rating, or will it affect the mortgage or loan? If I can carry on paying them both in full, will that keep things okay, or will it prevent him from doing the IVA?

Sorry, I know it's a bit scattered, but I'm a bit on edge now.

Any help would be massively appreciated.

Thanks

Charco_2

It wont screw up your credit history but some of the fallout may spill out over onto your credit report... however if you continue to pay the bills in full then you should be able to keep your report relatively clear - it's YOUR report, not his!

This would not prevent him from doing an IVA - it's his IVA not yours!

***Did you break up over the stress of debts - directly or indirectly? (I dont need to know this, it's a rhetorical question for you). Is there no way you see of going back and giving it another go?*** AGAIN, it's none of my business, but it might affect how you go about moving forward from here!

For instance, like it or not, your husband has a claim on the flat - you might want to protect this from his IVA. If there is no chance of reconciliation then get your separation sorted now in writing. There are other issues to think about like fair contributions towards you and your kid that need to be agreed too.

peachyprice

Sorry to disagree Charco, but it's not that simple.

It won't effect your credit score directly but unless you disassociate yourself from your ex, which you cannot do as you still have joint debts, he will be shown as an associate on your credit report and anyone searching your report may search his too before making a decision to lend to you.

Charco_2

I dont see where you disagreed!

There is going to be some fallout from his Report, some overlap. The best she can do is keep her end of the agreement up by paying the debt and minimise the impact.

peachyprice

I disagree because it can quite easily screw OP's credit history!

Any applications that are searched and refused because of OP's ex's IVA will have a direct adverse effect, regardless of how squeaky clean OP keeps her end of the agreements.

Being financially associated with an insolvent is not good news!