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Posted: Sat Mar 29, 2008 8:05 pm
by thom
If a debt is in 2 peoples names, do both people need to be involved in the IVA?
Posted: Sat Mar 29, 2008 8:10 pm
by chris.g
Hiya Thom and welcome.
Are you talking about joint debts? If you are then both are equally liable for the repayment, therefore if only one enters an IVA the other will probably be chased for the outstanding balance.
Posted: Sun Mar 30, 2008 8:58 am
by aguise
Hi thom
As chris says if only one enters an iva the other will become liable for the debt.
My husband and i have a couple of joint debts and we did an interlocking iva, they are two seperate but only one proposal, one monthly payment and income and expenditure is worked out jointly.
Ang
Posted: Sun Mar 30, 2008 11:07 am
by butterflies
re the question?
If a debt is in 2 peoples names?
can it work/be possible for one person to be bankrupt and one person to be in an iva?
or do both have to be bankrupt?
Posted: Sun Mar 30, 2008 11:16 am
by chris.g
I'm assuming because the creditors will probably get more return from an IVA that the person in the IVA would pay the lions share. It's definately one for the experts to clarify though.
Posted: Sun Mar 30, 2008 2:59 pm
by MelanieGiles
Yes - there is no problem with one party doing an IVA and the other being bankrupt. I have a number of clients who are in similar situations.
Posted: Sun Mar 30, 2008 8:01 pm
by butterflies
How do they work out the ratio then between iva and bankruptcy as i understood you can't favour one creditor to another?
Posted: Sun Mar 30, 2008 8:22 pm
by MelanieGiles
If you mean about a joint debt, this is irrelevant as you will both owe the full amount due to joint and several liability.