www.iva.co.uk

So....I understand that in interlocking IVAs each individual is accountable for the FULL amount of the joint overdraft. What I don't really understand is doesn't this mean that this creditor is getting paid twice which in turn shows preference to this creditor over the others?

Joint and several debts are always joint and several - although in interlocking arrangements they only get one dividend. In the event of non-interlocking IVAs, the creditor is perfectly entitled to get a dividend from each estate - that is the whole point of them seeking joint and several commitment from their borrowers, so this is not preferential treatment.

So, in interlocking IVAs when totalling up each individuals debt the joint account is counted as if each person owes the whole amount however re payment they only get one dividend? Sorry if I've got this wrong again! x

That's correct - but they only get one payment and not two if the IVA is interlocking.

Thanks Mel, I understand now! x

Ours aren't interlocking as we make two seperate payments. Hubby's debts were all joint with mine, plus I had credit and store cards as well. Would that be the reason why they weren't interlocking?

No - the reason would be that you could both afford to make a realistic contribution in your own right, thereby giving joint creditors a slice of both pies.