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Advice please

On behalf of a good friend......

I know little on the subject but briefly his wife went mad with the credit cards a few years ago and ended up with a top-up on the mortgage plus a secured loan amounting to £125000 (house worth £100000)

Same thing happened and now 3 years in to a 5 year IVA? (i think thats what its called.

They pay £2000 a month into this and so far have not missed a payment.

However, he has asked me to loan him £300 for this months bill or they will miss a payment (and likely to miss a few more) I have done this but i was wondering about a few points.

1. What happens if they missed a payment?

He has now found out his wife is playing away (has been for some time) His mom has asked him to leave and stay with her (leave and never return, stop paying anything and go bankrupt?)

2. What would be the outcome of doing this? They both work and have no children.

Comments

  • NeverAgain_2
    NeverAgain_2 Posts: 1,796 Forumite
    The 'V' in IVA stands for voluntary, so not much will happen if he misses a payment, other than creditors getting upset to varying degrees.

    If he goes bankrupt, he will free himself of all of his debts including, effectively, the mortgage and secured loans.

    Any joint debts become the responsibility of the wife, so she would be chased for those.
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