IVA - what happens to Joint loans???

newlywed wrote: »

Yeah OH never realised the full implications of a joint loan. His ex convinced him it was a good idea and then shortly afterwards did a bunk with an 18 year old.

Unfortunately, this loan thing was always going to be "messy", just didn't realise the extent.

So what does happen if the IVA fails and she gets made bankrupt?

And is there any way we can find out what terms have been negotiated with this debt on the IVA? The ex wouldn't even admit she was on an IVA the debt collection agency let slip!!!

There's no good news here newlywed. If your O.H's ex pays say 30p in the £1 they'll look to your O.H for the remaining 70p in the £1, they don't look at the debt as 50/50 split. If the ex ultimately goes bankrupt then they'll look to your O.H for the remainder of the total outstanding balance.

I think you'd struggle to find out what the terms are given the current obsession with data protection; it's possible they might given that your O.H is implicated in the loan. You'll be able to find who's administering the IVA by looking on the Insolvency Service's web site.

Richard

How much is involved, and how far back does it go?

Debt collectors are most reluctant to go to court, or even come round your house. That all costs money. It's much easier and cheaper to intimidate you by phone or letter.

The original lender has most likely written the money off, and sold the debt on to a debt collector for so many pence in the pound. That debt collector may then sell it on again to another debt collector. Sometimes these debts change hands six or seven times like pass the parcel.

Anyway, there is a chance that the new "owners" of the debt may be prepared to settle for a fraction of the sum outstanding, especially if it gives them a profit without having to do very much.

Bollinge wrote: »

How much is involved, and how far back does it go?

Debt collectors are most reluctant to go to court, or even come round your house. That all costs money. It's much easier and cheaper to intimidate you by phone or letter.

The original lender has most likely written the money off, and sold the debt on to a debt collector for so many pence in the pound. That debt collector may then sell it on again to another debt collector. Sometimes these debts change hands six or seven times like pass the parcel.

Anyway, there is a chance that the new "owners" of the debt may be prepared to settle for a fraction of the sum outstanding, especially if it gives them a profit without having to do very much.

I agree with all that Bollinge but my understanding was that the debt was included in the ex's IVA which would effectively exclude any "doing deals".

Newlywed, was the loan unsecured?

Richard