www.iva.co.uk

Hi

This is my first time posting on here so apologies if its in the wrong place!

I would like some help with a few questions about my boyfriends IVA. Although we have been together a few years his debts were built up before we met and he is now a year into his agreement. He had to sell his house and so recently moved in with me and we would like to know how this affects things - mainly the equity i have in my home. Is there a risk this could be taken into consideration when reviewing his IVA? The peple who sorted his IVA are not approachable for us to ask them, so any help would be appreciated.

Hi woo and welcome to the forum

Your boyfriend's IVA will not affect you in the slightest so long as he continues to make all of his payments on time. Has his expenditure changed as a result of the sale of his property? If so, his IP may need to review the level of his payments, as any cost savings will need to be passed on to creditors.

Thanks for your reply Melanie.

Now he is living with us his expenditure has changed but we are not sure how to work it all out, as he was not sure if he would stay if my equity could be linked to him and be at risk. He was considering renting somewhere so that we could keep our finances separate but your reply tells me that is not required.

Could you advise me how to work his outgoings out please? Prior to selling his house he was responsible for all his bills etc so it was easy to work out. Now its a bit harder to work out as we sort of pay for things together as partners do. We will certainly be no better off once I tell the tax credit people i have a partner (I am newly self employed so earning hardly anything at the moment and have 2 kids so he has sort of taken on looking after us all!) Ay advice anyone?

issue him a rent book and class him as a lodger !!!!!

Well, the thought had crossed my mind! that would make it much easier to sort out. Is it really as easy as that? (Sorry if I sound a bit dim, we dont want to lie and cheat as thats not really our way)

not many home visits take place these days by the benefits office trust me so not like the old days when they would come, walk around, count the tooth brushes etc etc.

He pays you rent - ensure this is enough for his share of the electric, gas, council etc - look in the local paper and guage how much a room would be for him in a shared house - my guess it would be between £300 / £400 per month!

Treating him as a lodger will be fine - but make sure he is paying a market rental commensurate with local rates, and a share of the bills. It goes without saying that this income must be declared by you for the purposes of your tax credit calculations.