Looking for a IVA - some questions...

[CraigB]

Hi.

I am seriously considering going down the IVA route and wondered if I could ask some questions that I can't seem to find the answer for.

I have 20K in unsecured debt at present due to various things in my life. Recently separted from my wife and child I am finding myself living in rented accomodation with a friend and piling up the debts at a considereable rate.

What I would like to know is if I was to be granted an IVA would this affect the credit rating of my housemate or his house? Hopefully my wife and I will reconcile soon, but I ask the same question about her: If I move back in (without being named on the mortgage) will an IVA affect her and her house? She has a good credit rating and I do not want an IVA to affect this. Also, would an IVA close my current bank account with a debit card?

Many thanks for reading.

Craig

[MelanieGiles]

Hi CraigB

An IVA in your name would not affect your housemates credit rating, but could affect your wife's. When you say moving back without being named on the mortgage - do you own a house jointly with your wife? If so, how much equity is there in the property?

You will only have your bank account closed under IVA proceedings if you have debts with the same bank.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[CraigB]

Hi Melanie. Many thanks for your quick response.

It is actually her house and I have no ownership. I pretty sure that it would only affect her credit rating if we had any joint financial arrangement - mortgage, bank account, saving account, insuranc etc. Is this the case?

I was named on the mortgage in the past but since moving out that has now been taken off. One of the many clauses for our reconciliation would be that an IVA would have no bearing on her, so I'm in a bit of a catch 22 at the moment.

Many thanks
Craig

[MelanieGiles]

So long as you can show that you have developed no beneficial interest in this property, this should be fine. How long were you married for, and has your wife paid for the mortgage entirely from her own income?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[CraigB]

Hi Melanie.

I'm still married, but separated for the moment. The mortgage payments came out of her account when I was on the mortgage (up until a year ago) so I have not paid anything under my name towards the house.

[CraigB]

Sorry, another question. One of my creditors is Halifax Credit card. I also have a bank account with a debit card with Halifax. I am assuming that as they are the same company this will affect my bank account? If so, I should obviously find another account before entering into an IVA. Does a debit card account certify as credit?

thanks

[MelanieGiles]

You will need to open a new account if you are thinking of proposing an IVA, as Halifax will undoubtedly close off your current account. A debit card does not class as taking credit, as you have to have the money in the account to cover each purchase.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[CraigB]

Thanks ever so much Melanie.