IVA - Joint Debt - How does it work?

sazaboo

Hi DFW's
After separating from my ex in Feb this year - now divorced,
I am currently in a DMP with Payplan and also waiting for the sale of my ex-home to be completed.
mortgage shortfall is about 20K joint debt in the DMP is 10k

all debt is in both names.

I have been told I can take the mortgage shortfall onto my DMP, and then I will look to an IVA to deal with the final amount of debt around 30k

ex husband isnt working or contributing to ant debt or child maintenence, he just hinders the process if Im honest!

Is there anything I need to know about before I embark on this?
I dont expect my ex to ever make any payments towards the debt and am resigned to clearing by myself - I have a 3 year old and a full time job so I can make regular payments, albeit probably not enought to get agreement from all my creditors (eek!?)

RAS

Hi

if you do an IVA, then the creditor accept say 30percent form you and chase OH for all the rest.

Have you taken proper advice from the other debt charities about your options. Payplan seem to be recommending IVAs more often and I am not sure this is appropriate given your complicated situation. If the creditors chase OH, is he going to go BR, which them pushes all the debt on you?

sazaboo

i kind of expect to be paying this myself whether he goes Bankrupt or not - its the chasing the ex thing which is bothering me - i thought they were happy aslong as they got a payment, regardless of who paid it, are you saying that even if I get an IVA - I might end up being chased twice? if he goes bankrupt after i get the iva?

bit confused, Payplan have been great so far?

RAS

Hmm no not paying that, but that if you do an IVA, then the creditors will chase OH for all the joint debt not included in the IVA.

How much do you think you could put into the IVA per month?

Also how are you going to deal with the short-fall on the house? I cannot see the mortgage company agreeing to it being sold below their equity or either of you being able to sort out a loan to cover the shortfall

NorthernLas

You can take advice from other impartial organisations e.g. CCCS and National Debtline (who are charities). Payplan is a company so you need to be aware that there is the potential that they may not be impartial since they will make money from you if you enter an IVA. There is an article on this website about IVAs and suitability.

sazaboo

thanks guys - Northern Rock have already accepted an initial offer from both of us to repay the shortfall, If i get an IVA, will it not be for the whole debt? i dont care if they chase him, he has not even tried to help out and has been unemployed for 12 months now. he threatens me that he is going to go bankrupt and tells me to write to his solicitor if i have a problem with the debts - as if he would do anything about it! what are the other options? i cant keep the DMP with 20k added to it - i will be paying it for the rest of my life with all the intrest being added still...