IVA Joint Bank Account & Credit Rating

Luisa07

I have recently completed my IVA and received my certificate. One part of the IVA was for a joint bank account overdraft of £400.00, this was satisfied within the completion of the IVA. However my wife has found out when trying to change the mortgage she has a default notice on her credit rating due to her name being part of this joint account, however my wife was seperate to the IVA. Is this right or can my wife challenge this with the bank ? If she cannot challenge, can she clear the outstanding £400.00 and the bank then clears the default notice against her ? Just wondered your thoughts before contacting the bank which is Lloyds.

[Deleted User]

It's correct.  The default will fall off after 6 years, settled or not.  It won't be removed before then.

Luisa07

Thanks. Seems harsh if settled.

[Deleted User]

Not really.  It was only applied because it wasn't settled in accordance with the terms - ie the account defaulted through not being paid.

mwarby

You might find your IVA affects her in other ways, the joint account links the 2 of you, so hey can see you had an IVA when credit checking her

lecy1234

Currently in an IVA, we have a joint bank account, i,m in an IVA the wife isn't, the bank are saying that she has to pay the balance of the overdraft otherwise the default will go against her, is this correct, surely it should be split 50/50

mwarby

It will be a case of joint and severally liable, ie you are both liable for 100% and they can peruse whichever party they wish to. This doesn’t mean they can get more than 100% overall, but does mean they can chose to chase the party most likely to pay