Joining mine and my partners money whilst in an iva

adam123456789

Basically, I’m starting an Iva next month and we’ve worked out that if we join our money together we should be able to get through it all relatively okay. 

How will this affect my Iva? Will I need to pay more or is there ways around it. 

I was thinking of using my account to pay all the current bills but then having my left over money put into a joint account along with hers

Grumpelstiltskin

So you have decided to do an IVA despite being advised as you are renting it isn't the best way forward?

A joint account will ruin your partner's credit for 6 years as well as yours, so it's up to you what you decide to do.

adam123456789

I spoke to stepchange and they advised it’s the best route to go down for me. 

So, in other words, don’t get a joint account even though it’s only for spends? 

Grumpelstiltskin

Any joint account will trash your partner's credit, let me say we have seen in recent weeks a number of occasions when Stepchange have recommended IVAs when they were not really best solution.

Please be 200% sure you are doing the right thing.

adam123456789

My issue is, I want to be able to get a mortgage when this is all over and with bankruptcy that’s impossible. 

That’s why I chose the Iva, thanks for the heads up though, appreciate that

Grumpelstiltskin

Honestly the effect of IVAs and bankruptcy are not much different.

They are both insolvencies where a DMP isn't.
You will have great difficulties getting a mortgage at a reasonable rate for some time after the IVA finishes and you do realize that as you haven't got a mortgage you will probably have to pay the IVA for 6 years instead of 5.

ManyWays

My issue is, I want to be able to get a mortgage when this is all over and with bankruptcy that’s impossible. 
That is nonsense. Plenty of people have got mortgages after bankruptcy.
As @Grumpelstiltskin says, the effect of bankruptcy and IVA in your credit record and future mortgage prospects is much the same. Many mortgage applications ask if you have ever been insolvent, then you have to declare an IVA in the same way that you would have to declare bankruptcy.
the only real difference is that in bankruptcy any monthly payments end after three years, so from that point you can start saving a deposit. But an IVA lasts 5 or 6 years, so its longer before you can start saving. 

beckstar1975

my sig has the amount we owed and we did a DMP, 2 years after we finished we remortgaged as by then the defaults had dropped off so our credit files looked lovely. And could truthfully answer 2 to the been bankrupt or in a debt arrangement (DMP doesn't count though be careful of the wording, some questions may pick it up). I am forever grateful for the advise we had on here to to for a DMP rather than IVA - and we had a property to protect. Meant we could pay it all off quicker as there were no fees to cover, every penny went to pay off our debts.

Please try again for advise on whether an DMP could work, as if you get your accounts defaulted first in 6 years it all drops off your file which is a massive help