My boyfriend has just moved in with an IVA!

[lorraine.c]

My boyfriend has just moved in with me and he comes with an IVA!
He has accepted a temporary job to keep up with his payments and is currently going for permanent job interviews.
I am pleased that he has finally taken control of his debts but would like some expert advice so that we can plan our future together.
1. Is there any incentive for him getting a better paid job with longer hours or should he be looking for a a job that pays the same as when the IVA was settled.
2. Can his change in circumstances be taken into consideration regarding living in a more expensive area and paying a greater contribution to my household. At the time of the IVA he was paying a meagre amount to his mum that he lived with. I would like him to make a more realistic contribution to the family home where I have three children. If he earnt more then he could contribute more.
3. I am a houseowner and would like to know if I am at any risk by living with someone with an IVA? Would appreciate any help. Lorraine

[Lula]

Hi,
Of course the incentive for going for a better paid job, is not only in terms of career but also because he will be able to pay more off to his creditors he needs to check his proposal he may have to pay 50% of overtime to the IP or al of it.
In terms of his contributions and change of circumstance he needs to contact his IP to complete a new income and expenditure form and poss to req a variation meeting. However if he earns more money and is outgoings increase also his monthly contibutions may stay the sma.e
As you the houseowner - i dont beleive your boyf IVA has any impact as his proposal will not include an equity relase clause.

First thing first , is for you boyf to read over his IVA proposal/chairman report!

I see being in an IVA as a postive way to deal with debts, so dont be to concerned!

[MelanieGiles]

Hi Lorraine

Your boyfriend will need to pay more into his IVA if his earnings increase, but this must be offset against his increased expenditure. To calculate what each of you should be paying towards shared household bills, I suggest that you work out the percentage of earnings you both contribute as individuals, and apply the same percentage to all shared household bills including the mortgage.

There are few risks to you as a homeowner, if you are living with someone who is in an IVA - but do make sure that he keeps up with the repayments as failed IVA may lead to bankruptcy proceedings which will identify your address publicly. Whilst this should not affect your credit rating, this will be advertised in the local paper.

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