I am almost 12 months into an IVA which was set up with my husband. We have now separated and I am keen to get the IVA split. The IVA is with Grant Thornton, they have told me that this is not possible as they don't do this. The only option they have given me is to let the IVA fail and then try to get another on my own. This would mean that I would have lost all of the money paid in and there is no guarantee that a new IVA would be accepted. Someone please help surely my IVA can be split.
That doesn't seem right at all as IVA's are never joint, just interlocking so can be split, have you asked to speak to your IP at GT rather than just a case officer?
Hi. I agree with Lem here --- there is no such thing as a joint IVA. You either have two seperate IVA;s or they are interlocking and can be split easily.
I suggest you contact Karol on IVACustomerServices@uk.gt.com putting only "IVA Forum" in the subject line, and ask her if she can shed any light on this, as I feel you have been given incorrect advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
When we split two years ago GT did not split the IVA and I have continued to pay it. Although now I am in the final year (IVA has been extended) GT were very nice allowing me to include the solicitor in my expenditure. I am not even aware that they contact my ex partner for the review process so I feel he has got off free and easy.
Please find the response below from GT, surely this can't be right, I am going to be tied to my ex for the next 5 years and I'm paying for it. Someone please help!!
I am writing to advise unfortunately the advice you have received in respect of our inability to propose a separation of your IVA is correct.
The IVA you have entered is interlocking with and unfortunately your proposal depends on the success of his to complete and vice versa. Clients who have separated have an obligation to continue to make the IVA work as originally agreed on an interlocking basis. Contributions can be adjusted within the Supervisor's discretion or referred back to creditors to formally reduce in order to meet all costs on an individual basis as opposed to a household basis. Also together you can propose a Full and Final settlement in an attempt to settle the arrangement early.
If you do not wish to continue to IVA together the alternative would be termination of the current arrangement and look at your alternative options, one of which would be to propose a new IVA in your sole name.
I appreciate this is not the news you were expecting, but a separation of an IVA is something Grant Thornton cannot offer our clients.
You can definately propose a variation to split the IVAs if this is strictly necessary, but IPs don't like doing it for the reasons GT are quoting you. I've probably only done it handful of times in my career, and it is messy - but is possible.
This seems to be fairly standard practice with G/T. I was widowed during my (joint/interlocked)IVA and it was never separated. I sort of understand their explanation in my case in that the variation was accepted on the basis of a joint IVA and because of this I am protected from my husbands creditors coming after me (as sole beneficiary of his estate). The fact that he left no estate may have made this a moot point but i suppose it protects me from the creditors bothering me. The really irritating part is that any windfalls/recently aquired assets etc will be paid into the IVA that consists of mainly my late husbands debts. The fortunate part is that there are no windfalls or recently aquired assets to consider but in principle it grates.
I'm so sorry that you had the pain of losing your husband whilst also going throught an IVA sterling. Your late husband's IVA would have automatically terminated upon his death, and as he left no estate his creditors would have no right to have pursued you.
Did you take legal advice about your position at the time?
Hi Melanie - I haven't taken legal advice but I do think I will question it once again. However, G/T have been adamant that the success of each IVA remains dependent on the other. My IVA is in closures now and I have wondered what my late husbands creditors will do when (and if) they know he has died. I'm sure that if closure took a reasonable amount of time I could put it all to bed and not let things niggle but not knowing when your IVA will complete leaves your nerves on edge.
I will also have a chat with the guys at the top of the tree in GT to see if this is a set policy they abide by internally, or just a misunderatnding with some of their troops.
