IVA and the Halifax

pickings

Hi, I have taken out an IVA due to debts with several credit cards and an overdraft on a Halifax current account. The halifax account was in joint names with my wife, but I was told that this was to be included in the IVA. There was an agreement that an allowance of £50 a month would be put down to my wife for her share of the halifax debt. She now has received a letter from Blair, Scott and Oliver saying that they have bought the debt from the Halifax, and she must pay them the full amount. Is this correct even though this debt was included in the IVA scheme which the Halifax agreed to.
Anyone with any ideas or experience of this problem?

adfax

Hi - sorry to hear your problems.

Unfortunately I think you have been wrongly advised. If the overdraft was in join names, then Halifax are entitled to pursue your wife for the whole debt. I guess this is not what you want to hear.

Hopefully someone will be along shortly who may have first hand experience of this and may be able to give you some positive advise.

Sorry ...

backhoe

When setting up my IVA we also had an account in joint names (in overdraft). We were told to change this to my name only and then it could be included on IVA, as we couldn't include if in joint names.

Sorry this probably doesn't help much, but I was led to believe that all debts had to be in my sole name to be included on IVA.

Hope you can get this sorted out.

Charco_2

I dont think the original poster was badly informed, I think he's getting a raw deal from Halifax!

Backhoe, I'm surprised a creditor allowed you to change a debt from joint names into your sole name since all that would have meant for them was that they had increased their risk on the debt going delinquent... which obviously it then did since you went into an IVA! It's rare for a bank to agree to that!

The reason I dont think the OP was mis-informed is because the IP/IVA Company made an allowance for his other half to repay the debt that she would be lumbered with. The IVA Company knew that Halifax would have the right to pursue the other half for the debt and made allowance for it! It's unfair of Halifax to refer this to a debt collection agency...

HOWEVER, the Halifax is part of the
Bank Of Scotland group
Blair Oliver and Scott have not bought the debt from Halifax, they are just a department of the same company... an imaginary firm of debt collecting professionals dressed up to sound official...

So long as your other half maintains her repayments to the Halifax debt there is actually very little they can do to... she will repay the debt in full - in her own good time!

3431Anna

adfax wrote: »

Hi - sorry to hear your problems.

Unfortunately I think you have been wrongly advised. If the overdraft was in join names, then Halifax are entitled to pursue your wife for the whole debt. I guess this is not what you want to hear.

Hopefully someone will be along shortly who may have first hand experience of this and may be able to give you some positive advise.

Sorry ...

My husband is just starting to do an IVA he is at present on a DMP we had a joint account with an overdraft which was in both names with tha Halifax this was added into his DMP I assumed it would be added into his IVA, he is waiting for a call from his IP and is going to ask about this I am quite worried as if they try to get me to pay the whole of the overdraft amount I wouldn't be able to, suppose I will just have to wait and see what the IP says, I'm glad that this has been pointed out as I wasn't aware of this :eek:

Charco_2

You will definitely be expect to deal with the overdraft and any other JOINT debt.

The nature of a joint account is not just to allow equal access for the parties invlved to any available funds but it also spreads the bank's risk when the account falls into arrears.

If one member of the joint agreement cannot repay then the other member will be responsible.

So the Joint Overdraft will be placed into your husband's IVA and over the course of five years he will be expected to pay back so many pence in the £ (whatever dividend he is offering to his other creditors) - meanwhile Halifax will be legally entitled to pursue you for the same debt until the balance is zero.

Is there only one Joint Debt?
Do you have other personal significant debts?

Allowance can be made in your husband's IVA for the fact that you will have your own debts to see to.

adfax

Charco wrote: »

Allowance can be made in your husband's IVA for the fact that you will have your own debts to see to.

Sorry if I am hi-jacking this thread, but when I set up my IVA, CCCS wouldn't permit there to be any allowance for my wife's credit card repayments - they said that this would be seen by my creditors as giving my wife's creditor preferential treatment.

To be honest I didn't really disagree as it did seem to make sense, and it meant the offer to my creditors was a lot more attractive. We are having to find the money out of our other allowances to cover her monthly payments, which is not ideal.

If I am entitled to make allowance, would this be based on how much my wife contributes to the household income (which is essentially nothing as she is a full time mum, and only receives child benefit and a small amount of tax credits, which adds up to about £130 per month, which is about 5% of the total monthly household income).

Would they argue that she is entitled to 5% of the surplus as she only contributes 5% of the income, or how would it be worked out?

If I could get say a £50 a month allowance, this would offset some of the pay rise I have had this year.

Charco_2

It does lead into a sort of a grey area.

Normally, regarding benefits and other child related credits, they are notched down agains the "MRS" income, there is no need for anyone to have to contribute to your IVA so only your share of the household surplus should be included in your monthly contrbutions.

HOWEVER, since your wife's sole income is based on the benefits and credits received, it would be hard to argue that you have an allowance of £250 a month for household toiletries and groceries for you and the kids when that's what those benefits are received for... (maybe i haven't explained that very well)

In your I&E you get an allowance for your food and toiletries budget - £239 minimum for a couple with a child. Your wife's income is only 5% of the household total so she should only pay 5% of this allowance... BUT her income is specifically for these types of costs (food, school etc) so it would be hard to argue that your wife is getting money for one thing but then you are paying it anyway from your earnings and your wife simply keeps the child benefit or tax credit money... does that make sense?
So to an extent the CCCS have a point when they say it might be seen as preferential to your wife's creditors.

FINALLY THOUGH
It COULD be argued that your wife is staying at home being a full time mother and home-maker which is allowing you to go out to be the sole bread-winner in the house. What does your wife get in return for this sacrifice?
Well so far she gets advice from the CCCS that her credit is of no consequence to the household even though it is likely to have been built on your household's ability to repay (since she has no income).
Her "sacrifice" allows you to go out to maximise your income and she deserves some recognition for that... otherwise you'd be better off with her finding work and then hiring a nanny!

I would wager that most other IVA companies would have recognised and made provision for this situation but creditor friendly CCCS did not. I would certainly raise this issue when a new I&E is drawn up to reflect your pay-rise. At the end of the day these things are negotiable if it makes sense then your creditors will consider it. No point you dealing with all "your" creditors if the wolf is still looking to blow your house down in your wife's name! You probably took out the credit as a household.

If your wife worked then either you would have to work less to help with your family or between you you'd have to make another provision for your family which would likely cost money.

3431Anna

Charco wrote: »

You will definitely be expect to deal with the overdraft and any other JOINT debt.

The nature of a joint account is not just to allow equal access for the parties invlved to any available funds but it also spreads the bank's risk when the account falls into arrears.

If one member of the joint agreement cannot repay then the other member will be responsible.

So the Joint Overdraft will be placed into your husband's IVA and over the course of five years he will be expected to pay back so many pence in the £ (whatever dividend he is offering to his other creditors) - meanwhile Halifax will be legally entitled to pursue you for the same debt until the balance is zero.

Is there only one Joint Debt?
Do you have other personal significant debts?

Allowance can be made in your husband's IVA for the fact that you will have your own debts to see to.

I do have debts of myown which I pay on a DMP each month from my wages I also contribute to the other householed bills ie food electricity water etc

Charco_2

So is the joint halifax debt included in your DMP and to be included in your husband's IVA... that's fair enough.

How much are your debts for? Is it worth considering a Joint IVA for you and your Husband?

3431Anna

Charco wrote: »

So is the joint halifax debt included in your DMP and to be included in your husband's IVA... that's fair enough.

How much are your debts for? Is it worth considering a Joint IVA for you and your Husband?

Husband has spoken to IP and they have said that I need to contact payplan to get the overdraft added to my DMP before they (Halifax)start to chase me for the amount or contact them and make an offer for payment I am going to speak to payplan tomorrow:eek: