New to an IVA Can my wife's spare pay be claimed?

[The Doctor]

Hi everyone!

I've just had an IVA agreed but I'm concerned about one thing that my IP has told me.

He said that because all of the debts that I had were in my name only and nothing to do with my wife whatsoever he said that none of my creditors can claim any of her spare income at the end of the month once she has paid her share of the household expenditure to put towards my IVA.

Is this true? The reason I ask is that I was talking to someone about this yesterday and they said that they can?

I've got a 4th year mortgage clause in my IVA and it states that half of any equity released is hers because of this same reason.

Any clarification on this subject would be most helpful?

Cheers!

[pbeck]

Different IPs have different views on this.

Some IPs feel that if all the debts are in one spouse's name, yet the couple were living together then the other spouse benefitted from the expenditure funded by debt, then that other spouse should contribute his/her surplus income to the IVA too, other IPs take your IP's view that only your share of the surplus income should be paid over.

If the IVA proposal spells out clearly what will happen to the equity then you can rely on that.

[MelanieGiles]

I would say that your IP is spot on with his advice. In the eyes of the law, as operated by the Insolvency Service, another person's income cannot be taken for the benefit of another's insolvent estate.

As your IVA has been approved, your IP will supervise it in line with his interpretation of the specific terms and conditions contained within the proposal.