Br & iva

Sars49

Hi Everyone, I will endeavor to make this short! July this year me & OH decided to stop making payments & go BR, we vacated our property, which was only in my name & is now going through repo', so we were both going to file next week, 40% of the unsecured debt is in my name, I am at the moment the main breadwinner, OH works part time, however, other half has an opportunity to expand an existing business through a partnership which would all come about in the new year, problem is, if OH declares BR, that could not come about & it is a serious opportunity for us to clear our debt in the following 12 to 24 months.

So OH is now thinking of going on an IVA, OH has approximately
£60,000 of debt, all unsecured, with the biggest being a CC for about £11,000.

What would be your advice? Also what would be the best avenue to take if an IVA is the best option, I am working full time & OH will be working all hours to make sure this comes off, so the least time consuming way of dealing with setting up an IVA & dealing with creditors is paramount.

Also what happens to joint debts, would OH have to pay them in full, or would half of the debt go into my BR, as I will still be filing?

Sorry, a lot longer than I thought, as you can see though, it is quite a complicated dilemma, or maybe not!

DD, Fermi, Tigerfeet, or anyone with the savvy to answer these type of questions. Thankyou.:o

National_Debtline

Hello there.

You mention about your partner and the possibility of expanding the business through a partnership. You also mention that if your partner was to become bankrupt this might not happen, is there a reason why? As an undischarged bankrupt your partner would not be able to be a company director but they could be involved with the running of a partnership.

What would be your advice? Also what would be the best avenue to take if an IVA is the best option, I am working full time & OH will be working all hours to make sure this comes off, so the least time consuming way of dealing with setting up an IVA & dealing with creditors is paramount.

It would be really important for you both to draw up a comprehensive financial statement. For this you should be able to see what option might be the best to go for. For an IVA to succeed it will require a regular, fixed payment. If your partner's earnings are likely to fluctuate an IVA may be tricky to stick to.

Also what happens to joint debts, would OH have to pay them in full, or would half of the debt go into my BR, as I will still be filing?

You are both liable for the full amount of the debt. This is known as the rule of 'joint and several liability'. If you became bankrupt, the creditor could still chase your partner for the full amount outstanding.

If your partner is looking for any further business-specific information there is a wealth of useful information via our sister organisation's website. They are called Business Debtline: http://www.bdl.org.uk/

Best wishes,

David @ NDL.

Sars49

Hi, Thanks for the reply, I'm not sure I explained myself to well, the partnership I referred to would not be me but my OH & a 3rd party, thereason he would not be able to go BR is because the business is involved in the Finance sector & therefore precludes bankrupts.

Does that make any more sense?:)

National_Debtline

Hello there. It does, thank you. As it's a financial job you may need to be careful with the IVA route too. An IVA is a formal insolvency option as much as bankruptcy is. Prior to making any final decisions do research the possible work-related implications.

Best wishes,

David.

Sars49

Hi David,

Thanks again, just been to the bdl site you suggested, very helpful, I will call them for advice, meantime any other snippets would be great.

National_Debtline

I think the most important single piece of advice there is (and this goes for anyone looking to deal with their debts) would be to complete an accurate financial statement. Prior to even considering what option to go for it's vital to ensure that you have sufficient money to meet your important day-to-day outgoings such as housing costs, bills, food and travelling costs etc. I appreciate the difficulties in doing this - especially if there are potential changes on the horizon.

Also, do ensure that you research as much as you can. Take your time, ask as many questions as you need

Best wishes,

David.