Iva

nhs1984

I am in an IVA with a company called Money Debt and Credit. Everything went through OK last December. All our Debts as we thought were taken into account. How wrong we were. It was never explained to my wife and I that only the person named on the IVA that it was their debts were sorted not the others, even the Joint Debts. We were in a Debt Management programme but that would have taken 11 years to pay off. My wife is now getting letters phone calls from our Joint debts asking for payment not for half of the amount for the Full amount. When we went for the IVA all our combined incomes were taken into account, not just mine. I have informed MDC about the situation but they cannot or will not help. We are paying the IVA the amount we can just about afford and the other joint creditors now want what we have not got, can anybody suggest what we could do.

Hannah_10

Who's name is the IVA in? I'm not sure from what you've written.

nhs1984

The IVA is in my name and so all the Joint accounts we had, they are now chasing my wife not for half, but for the full amount owing. Even though I am paying the joint accounts the full amount under the IVA.One instance Nat West owing £1000.00 in total ( Joint account ) I am paying under the IVA the total amount they are asking for which is £1000.00. Then they are also chasing my wife for the same amount £1000.00 so in fact they want double the amount owing.We have tried explaining this to the people who phone up but to no avail. My wife is disabled and it is causing her to stress out more than usual. I work 10 hour shifts so am not around all the time,my daughters are in when I am not but they insist on speaking to my wife.

judojub

Unfortunately nhs this is the case. They are perfectly entitled to chase your wife the full amount of the debt. I suggest that your wife call one of the debt charity helplines. CAB/CCCS/National Debt Helpline. They will be able to advise her on what she should do. I am sure somebody will be along soon to advise you more. Hang in there.

FoggyBrain_2

Hi NHS and welcome. It sounds to me as though you have been incredibly badly advised by MD&C. You should have had two interlocking (joint) IVA's, which would have protected both parties to the joint debts. I don't know about the legalities as to whether another proposal can be drafted for your wife in bring her in to the arrangment, as this will, in any case, have to be agreed by the creditors.

Ring up MD&C and ask (no .. DEMAND) to speak to the IP directly to see if there is a way forward. If they continue to be unhelpful ask for details of their regulatory body. Just that request sometimes makes them more helpful! I think you have a case to present to the regulators as this situation should never have occured in the first place. I am assuming that you informed MD&C that some of the loans were joint (if not they should have been able to deduce that from the paperwork ,,, statements etc).

If all else fails there is always the bankruptcy route. But this will be dependant upon what assets you might need to protect. Do you own your own home, and, if so, is there much equity?

nhs1984

We own our property ( mortguaged ) with about £4k in equity. I did phone MD&C to ask them about a Debt Management Programme but they would only accept my wifes Debts if we could afford £100/month. They have left us agter we paid everything out including their £164/month with £80/month. We did inform them of the joint debts and they had all the paperwork for the joint accounts so yes is was very clear to them. Thank you for your reply.

nhs1984

Could someone please advise me if my wife should have been named on the IVA as well, seemingley some of our debts are joint.

FoggyBrain_2

No, you can't have an IVA with two parties. What should have happened was that you and the wife should have had two interlocking IVA's. 1 would list your debts and the joint debts, the other would list her debts and the joint debts. Although they are technically seperate IVA's there would only be one payment to cover both, based on your amalgamated disposable income.

nhs1984

Thanks Foggy. I will phone MD&C and see if the proposal can be changed to an interlocking IVA.

Charco_2

Even then though, an IVA may not have been suitable for you wife - however if she was not entering the IVA, then from the household disposable income, there should have been an allowance made so that she could make contributions to her own debts.

Contact your IP to discuss that! It is your IVA and (although I do not know the figures involved in your IVA and a lot would depend on that) you should still be able to contact your IP to have your IVA varied to reduce your contributions and allow for the fact that your wife has her own debts to deal with.

nhs1984

I did phone MD&C and they said to me that they had allowed some money to pay for my wife's debts.They said they allowed £90/month to cover all of her debts.When we have contacted her creditors they in total want £135/month to cover her debts.Which leaves us £45/month short.MD&C said they were sending another expenditure form for me to fill in to see what has changed in mine and my wife's spending, I did say nothing has changed but everything in price is going up not down.As for the interlocking IVA they said that my wife's debts were not enough to cover an interlocking IVA. We owe between us £24K that is including our joint debts.
Thanks for your help.