IVA and likely marriage split, what then?

yorkieone

Hi all

My marriage has been on the rocky road for some time, we seem to hurt eachother more as opposed to caring and respecting one another, I don't even like the person that I'm becoming I think we have only stayed together for some time because of our 2 children (youngest is 3). I do believe if the parents are 'happy' then the children will be as well.

I think seperation is likely in the very near future. My Q is, what will happen as regards to our IVA payments? (currently in step 2 for the IVA)

Payplan have told me that the IVA will be set-up as 2 individual IVA's and not joint. Does this mean that what's mine is mine, what's his is his and what's joint will be split 50/50?

I know my husband very well, I don't 'feel' he will be committed to paying his share, I would be pleasantly surprised if he did. What could happen, would I be expected to pay everything that is joint?

Many thanks for your time x

Payplan_company_representative

Hi yorkieone

I am very sorry to hear of your situation.

The way it works is that your IVA will have all of your debts plus any joint debts and his will have his own debts plus the joint debts. You are both liable for the joint debts so the full amount will be included in both your IVA's.


If you do seperate you need to think about your incomings and outgoings, will the IVA still be affordable for you? The IVA is a 5 year plan and you need to make sure you can sustain it.

If you do the IVA as long as you maintain your payments, at the end of the five years you will be debt free. If your partners doesn't maintain his payments then he will be chased for the remaining balance of any of the joint debts.

If you think that things are really going to change, I would suggest you speak to your case officer who will be able to tell you what options you have for now.

I hope this has helped you, if you do have anymore questions then please do not hesitate to contact me.

Lizzy.

Charco_2

The two IVAs are being set-up as "a joint IVA" - this is a mis-nomer, very common phrase but slightly misleading or easily misunderstood (no-one is trying to mislead you, I use the phrase very often myself) - the correct phrase however is "interlocking and mutually reliant"! (see why people use "joint" instead?)

Basically you will both be responsible for your own debts (this includes joint debts). You might make only one payment as the amount you can jointly afford as a couple to the IVA but this will actually be administered as two payments. If you later split up it is possible to separate these "joint" IVAs but will require a variation to the IVA(s), a new Income and Expenditure from each of you (to establish the amount you can afford to repay in your new circumstances) and also a new creditors meeting for your creditors to accept or reject your new offer.

Hopefully though this will not be necessary once you have lifted the weight of debt from off your joint shoulders. Its at these times you realise that the true cost of debt isn't just the interest rates you signed up to in the banks but the affect of the pressure, the health/stress, the family life etc

Good luck!

yorkieone

Thank you both for your advice.

It's such a lot of information to take in and digest!

Thanks again x