IVA and partnes income

gumtree22

I am in a huge amount of debt. I owe about 80k from when I ran a business that failed. mIt is in the form of credit card debt, loans and overdrafts. I want to enter an IVA but the problem is my partner earns much more than I do and the IVA company want a chunk of what she considers her money. She earns 40k and runs her own ltd company. It is expanding at the moment and needs the extra cash it creates to fuel further expansion. I earn 15k and am self employed. The house is in her name and she has a year left on a loan at 350 a month. The IVA company say the repayments will rise when her loan is finished. I said what is she takes out another loan for a car or suchlike. They said no, she cant as she will be paying them any excess income.

The IVA company want a copy of her Ltd company accounts on a yearly basis and any cash held in it they say must be withdrawn to be included in the IVA pot. She says no way as the accounts are none of their business and any expansion will come to a halt. Is there any way around this short of moving out?

FoggyBrain_2

Yes. The simple way around this is to use a company which doesn't expect your wife to pay your IVA! You aren't speaking with Payplan, by any chance, are you?

I suggest you pop over to https://www.iva.com and have a word with a couple of the firms represented there. The advice is free and without obligation.

milliemonster

Blimey, I wouldn't want to be using that company that's for sure, a reputable IVA provider will want to know some details of your wife's income as they will want to ensure that you are both fairly contributing to the household expenditure, that should be all, anything then left over from her own salary is hers to do with as she wishes.

There are many reputable companies out there, but foggy is right, payplan (as much as people on this forum seem to love them) do tend to do this to their IVA customers.

FoggyBrain_2

This is NOT standard practice ! This is Payplan's practice, yes, and maybe some others, but not standard. The usual practice is for the spousal income to be known in order to calculate their fair share of the expenses ( if she earns three times what you earn, she will be expected to pay three quarters of the expenses, thereby freeing up more of YOUR income to pay to YOUR IVA. Most companies DO NOT work out disposable income on a household basis.

Vikipollard

I'm with Foggy on this. They took my OH's income into account for proportionate sharing of bills, but there was never any suggestion that his money would all be taken too. They took MY disposable income, as the debts were MINE.

AMDS, I never had to 'prove' my OH hadnt benefitted from my debts. Indeed, it categorically states in my proposal that the reason I'd run up the debts was furnishing the house which is solely mortgaged in his name, so if what you say is true, then surely that would have meant he would have been required to pay. My proposal says 'I' accumulated these debts. Not 'we'.

OP, find a different provider. You havent said who gave you this advice, but as others have said, pop over to www.iva.com. They gave me free advice that, when I asked my IP the same question, got exactly the same answers back.

nottoolate

amds84 wrote: »

This is standard practice for an IVA company, and part of the legislation.

where exactly in the legislation does it say that should be done?

FoggyBrain_2

I look forward to it amds. By the way -- I did NOT say Income and Expenditure was based upon the applicant only -- I said (and am CORRECT) that DISPOSABLE INCOME is generally worked out on the applicant's income, not the HOUSEHOLD income, as Payplan do.