Help! hubby 100% debt with LTSB

formidablelady

In the process of applying for an IVA for myself and my hubby. My advisor has now told me as his debt is 100% with LTSB they may not accept it. Although I have read somewhere that they are begining to accept them. Does anyone have any experience of this? She initially said that we should do a DMP for him and an IVA for me but I am reluctant to do this as I know DMP can go on for quite some time. She is now putting forward a linked IVA for us.

rira

Hello, I really don't have any answer at all - but I can tell how distressed you are and I am so sorry you have to go through this.

I am sure someone will be along soon to answer you.

Penelope_Penguin

formidablelady wrote: »

In the process of applying for an IVA for myself and my hubby. My advisor has now told me as his debt is 100% with LTSB they may not accept it.

The problem with a single-creditor IVA is that they alone decide whether to accept or deny your proposal. I suggest that you speak to your IP and ask what is the likely outcome in their experience.

When I did my training on IVAs I was told that you needed 2 creditors or more. Looks like this might have changed.

Mercyknight_2

In relation to this; is the Halifax and Lloyds TSB classed as the same creditor?

joesaunt

85% of mine was with Lloyds and they were the only creditors to accept my IVA!

Good luck and keep us informed, they are a great lot on this board.

formidablelady

Thanks for the replies.

When I did my training on IVAs I was told that you needed 2 creditors or more. Looks like this might have changed.

I think this is why she is suggesting a linked IVA as I have more than 1 creditor.

bernard828

You should be fine. The difficulty with having all your debt with one creditor is that the creditor then may ask the question - why do you need to go through an IVA? Surely we could come to an amicable solution informally since it's just you and us?

The person dealing with your IVA will have to show Lloyds that you're not able to deal with your joint debt. Just because your husband's debt could be dealt with informally doesn't mean your creditors won't be a factor because you come as a husband-and-wife package. So you should be fine.

headstuckinsand

From the creditors point of view you would expect that Lloyds would be more inclined to accept the agreement as in effect they will be getting all of the IVA payments as opposed to sharing them with other creditors.
It all depends how your IP presents the proposal - as depending on your circumstances, if Lloyds don't accept ,they could end up with nothing were you to go down the bankruptcy route.