Hi all, this is my first post but wondered if anyone could help me, My Husband entered into an IVA in Decemeber 2012, we had a joint Barclays account with a hefty overdraft of approx £4000.00, we have just found out the overdraft went into the IVA and Barclays have closed the account. We didn't think the overdraft went into the IVA because it was joint, we was actually prepared for Barclays to chase me for the money, which I was willing to pay, now it has gone into his IVA, how will this affect me, will they still chase me for the money? will I end up with a default? how does this work? thank you
There will have been an allowance made for the debt to be repaid so you should contact Barclays and arrange to clear the debt by way of a lump sum or monthly payments. If you have a proper arrangement in place there is no need for Barclays to default you and if you clear the debt in full you could be entitled to receive a dividend from your husband's IVA. If you do not clear the debt straightaway any payments from his IVA will reduce the capital balance and therefore the time it takes for you to repay the debt.
Thank you for your replies, I contacted Barclays about paying and a lady said it is now in an iva and account closed, I asked about being defaulted she said I could possibly get defaulted, she made it sound as though the debt is now out of there hands and I cant make any payments, im so confused, imthink my husband needs to contact his ip, once again thank you for your replies.
Surely your your husband would have thoroughly reviewed the terms of the IVA before signing the documents, in which case he would have known the joint debt was included - and it is definately right to include it in any case.
As Michael says, if you pay off the debt in full, you can claim to be a creditor in equity for half of the value of the repaid debt in your husband's IVA. Press Barclays to acknowledge your right as being co-responsible for that debt, to continue to meet the contractual payments.
