Hello
I had a joint IVA with my ex. We are in the process of divorce. When he left, he stopped making mortgate payments and as a result the house was repossessed leaving a shortfall of £28000. The IVA payments were on hold as he was made redundant but are due to start again this month. The IVA was mostly his debt - approx £30,000 and very little was mine - £800, the remainder was joint - £2000.
If the IVA fails will the debt revert back to the original parties? My ex has indicated he is considering bankrupcy in which case I understand i will be liable for all of the shortfall regarding the repossession, but what would happen to the IVA?
If the IVA fails,because the payments aren't up to date, then you will both be responsible for your own debts and the joint debts, as you are jointly and severally liable for the full amount, and that will include the mortgage shortfall.
You could also consider bankruptcy if you don't have any assets, that way you could both make a clean break.
You will both have to let the IVA fail before going bankrupt, which normally means missing three payments, but as you have had a payment break, I don't know how this works.
I would initially speak to your IP and see what they say.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It seems strange that you were put into an IVA for £2,800 as surely you could have maintained the payments on those debts yourself. However, now that you are in an IVA and there is a £28,000 debt to be added the arrangements will have to be split and varied. Given that the house has been repossessed bankruptcy may be the only realistic option if you have little or no surplus but your IP will be able to advise further with full knowledge of your personal affairs.
I wonder it was a typo, and should have read £20k? That is what I thought - but I could have been wrong.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
His IVA will certainly fail if he decides to go Bankrupt, but technically speaking your IVA could still continue with new terms if your creditors accepted them.
Your IP will need to establish how much you can afford in your new circumstances, and whether you could propose new monthly contributions that would give your creditors a reasonable dividend. This might be tough with your increased expenditure and the additional £28,000 unsecured debt which you will now be liable for.
If your creditors will not accept new terms, then unfortunately your IVA will probably also fail. Now that you have no property though, your circumstances may lend themselves more to Bankruptcy - you should discuss your situation with your IP and let him advise you on whether this would now be an option, or whether there are other factors in play that we here aren't aware of.
