Hi Michael,
I spoke to them this morning and they stated that we would be refused the IVA because we would be proposing we have £645 disposable income and in theory we can pay our debt off in 3.5 years, However thats only if all interest is frozen and our mortgage doesnt go back up....which it will as we all know!
The interest rate for Northern Rock is very high and I have heard that they are awkward creditors to work with.
I am writing this as I but its actually my partner who will be applying for the IVA.
He has the Northern Rock loan (£19,300)and further debt including 2 x joint debts totalling £2000.
I also have approx just under £4000 (including the joint debt above) so I am not eligable for IVA. I have been advised to go on a DMP for what I owe, paying £60 a month for just over 5 years. I could pay this off much quicker but have been advised to do it this way because by paying it off it will effect our joint disposable income and therefore effect his IVA being granted?!
This seems very odd as you are individuals. You may not even be insolvent if a proper look is taken at your finances. If you earn equal amounts you have an equal surplus and you should use to repay your debts and keep your credit file clean. Your partner should only be paying his surplus to his creditors and it seems that you have not been treated as individuals which is a basic thing when looking at clients problems.
Creditors may wonder how your partner has the bulk of the debt and if it was incurred to fund a joint lifestyle they may ask for you to support his IVA but only after you have paid your own creditors. You should seek another opinion Carla as what you say does not sound like good or fair advice.
My partner already had £19,300 debt prior to us meeting so I had nothing to do with that so am not liable.
If I was to enter a DMP would my credit file be affected then?
Thankyou for your responses, im sorry i am getting more and more confused.
If you enter a DMP your credit will be damaged but it is not necessary if you can pay your own creditors. It is essential to look at each individual before jumping to the conclusion that a 'joint' or interlocking IVA is the best option. It really depends on your incomes and expenditures.
Last edited by Michael Peoples on Thu Oct 29, 2009 8:46 pm, edited 1 time in total.
