Ex partners entering iva's with joint loans

Iambec_2

Hi everyone

My ex and I got a joint loan. I had nothing really to do with this loan as It was for my ex partner. They wanted a loan to pay off their credit cards etc but could not get a loan in their name alone. I agreed to put my name on it being young, naive and not thinking anything of it. The monies went into their account, all correspondence in their name etc etc.

We then split up, went our separate ways and I was living oblivious to the the fact I was being persued by debt collectors at my old address. It wasn't until I was refused a store card (my credit file was perfect) that I found something to be wrong.

I signed up to view my credit file and found I was in default with a loan company for almost a year.

Turns out my ex entered into an IVA. And it was myself that had to pay the full amount of the loan myself.

Many hours were spent writing and phoning and arguing with the loan company themselves and the number of different agencies assigned yo collecting this debt from me. I fought it for a good year but no one seemed to understand or know at all how iva's and joint loans work.

My ex partner claims to have spoken to their iva people and they say the iva is going towards the joint loan.

However I was being chased for the full amount with no details stating it was a joint loan and was magically just in my name.

I eventually persuaded my dad to help me out pay a lump sum to get them off my back, we settled the 5 grand with a 3700 pay off.

Despite this, iva are still claiming the iva payments are paying this loan?!?

What on earth is going on and why doesn't anyone seem to know or want to know about what really happens when a joint loan is supposedly entered into an iva agreement? Thanks!!!!

FoggyBrain_2

Hi. I am sure this was explained to your ex. Maybe in one ear, out the other!

With a joint debt the person entering the iVA is protected from the creditor and the other, solvent borrower ( you) becomes solely responsible for the full debt . The creditor will therefore chase you for the whole lot, even though there are part payments being made into the IVA.

In this instance, the loan was £5k. You settled with £3.7k. So the creditor will claim their share of the dividend based upon the £1.3k outstanding. So, in the end they do rather better than they would have done had the whole lot been covered in the IVA. And the other creditors benefit as they will get the rest of the share the joint creditor would have got.

Your ex will still pay his whole agreed payments into his IVA. I am afraid the only person who has lost out is you. However, it's all done and dusted now, and you cab move on, hopefully.

Iambec_2

Thanks foggy! Although bad news at least it clears it up. So my ex is basically paying to a loan that technically doesn't exist anymore and nothing can be done! Brilliant! Is there no way at all to claim the money they have paid in back? Like with unfair protection plan thing?! I could really do with my 4 grand back!!

FoggyBrain_2

I am afraid your £4k is gone, but at least so has your liability. The money your ex is paying in will, in part, go to paying off the rest of the loan, so it does still exist, at least on paper.. The rest of his payments will go to his other creditors. As there is now less to pay off on the joint debt the other creditors will get more.

You would have no grounds ( if it were even possible) to claim anything back. Unfortunately you signed on the dotted line to be jointly and severally responsible for the debt. As for the money the ex is paying into the IVA .. part of HIS agreement is to pay all of his disposable income into the pot, which he is doing. The only difference this makes to the IVA is that the dividend will be shared out slightly differently.

retsbed

Iambec wrote: »

Hi everyone

My ex and I got a joint loan. I had nothing really to do with this loan as It was for my ex partner. They wanted a loan to pay off their credit cards etc but could not get a loan in their name alone. I agreed to put my name on it being young, naive and not thinking anything of it. The monies went into their account, all correspondence in their name etc etc.

We then split up, went our separate ways and I was living oblivious to the the fact I was being persued by debt collectors at my old address. It wasn't until I was refused a store card (my credit file was perfect) that I found something to be wrong.

I signed up to view my credit file and found I was in default with a loan company for almost a year.

Turns out my ex entered into an IVA. And it was myself that had to pay the full amount of the loan myself.

Many hours were spent writing and phoning and arguing with the loan company themselves and the number of different agencies assigned yo collecting this debt from me. I fought it for a good year but no one seemed to understand or know at all how iva's and joint loans work.

My ex partner claims to have spoken to their iva people and they say the iva is going towards the joint loan.

However I was being chased for the full amount with no details stating it was a joint loan and was magically just in my name.

I eventually persuaded my dad to help me out pay a lump sum to get them off my back, we settled the 5 grand with a 3700 pay off.

Despite this, iva are still claiming the iva payments are paying this loan?!?

What on earth is going on and why doesn't anyone seem to know or want to know about what really happens when a joint loan is supposedly entered into an iva agreement? Thanks!!!!

I have a similar problem although I am still together with my partner.
We took out a joint bank account with Natwest with an overdraft of £600. When my partner entered the IVA they were told that the whole OD was included and I would not need to do anything. How naive was I for believing that!!
Three years into my partner's IVA I applied for 0% credit card to try and clear about a grand's worth of cc debt. My application was refused and about a week later I started getting letters from Natwest. Many phone calls later to the IVA company and Natwest I got nowhere. The debt was passed to a debt collection agency (it had doubled to £1200) and my clean credit file was damaged beyond belief. I agreed to pay the DCA a nominal amount to keep them off my back. It's been two years now and I'm still livid

FoggyBrain_2

Hi retsbed. Might I ask which company gave you that awful advice ? and .......

why don't you use a tin to make a cheesecake ???

debtinfo

well the whole of his liability was included, i pesume that it was just his IVA and the IP was giving advice to him as the paying cstomer rather than you

retsbed

FoggyBrain wrote: »

Hi retsbed. Might I ask which company gave you that awful advice ? and .......

why don't you use a tin to make a cheesecake ???

Debt Free Direct it was.

I was visiting my brother in Egypt a few years ago and we were desperate for cheesecake and so decided to make our own. We couldn't find the appropriate cheesecake tin in the village and tried a bread tin instead....needless to say it flopped but we still ate it

FoggyBrain_2

Yes, Debtinfo -- that is technically true. But I still think the firm should have pointed out that the other party was still liable.