iva advice required re joint loan

nikko64

i am currently 5 months into an iva and everything was going well until this week.
all my debts were included in my iva including a joint loan i had taken out with my wife.all my creditors accepted my payment plan,including lloyds who the loan was with,and my wifes small income was included in my figures for my payment plan in my iva.
then out of the blue this week she gets a letter from a debt collection company chasing her for the money (over £7000)
having spoken to them we are making a token payment of £5 per month (that's all we can afford)
what i want to know is and no-one seems able to tell me is when my iva has finished will she still have to pay the balance off or seeing as it's been included in my iva will it be written off?
she's been in tears since it happened as we thought once my iva was finished we would be starting from scratch again.......

any advice would be gratefully received.

thank you

debtinfo

Yes she is jointly responsible for the Loan, so she faces the same options as you, either arrange a payment plan to pay it off or file for a type of insolvency (IVA,DRO,Bankruptcy).She is not paying through your IVA, Her income is simply included in the calculation to work out how much both she and you are paying towards the household bills respectively

nikko64

im guessing then that interest and charges will be added as my iva progresses so that when its finished the wife could end up with double the amount to pay back?