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Hi I hope you can help me with this query;

My wife has received an application pack to complete for an ?IVA we are just completing the income/expenditure form. My wife's debts are in her name only and her monthly income % is 36% of the whole income. Is it reasonable to put that her expenditure is 36% of the monthly outgoings?

If this is reasonable she will have monthly surplus that will be around 250 but if she were to use 50% of the expenditure as her outgoings the surplus is not going to look very appealing to creditors

Any thoughts would be gratefully received

Yes, she should use 36% of the outgoings.

Now, to make it easier for the creditors to understand, both incomes and all the household expenditure should be shown in the budget, and the residual surplus divided 64/36 at the end of it, this effectively gives the same result.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

It is more likealy that the IP will need your wife to declare the total household income, and you should be aware that a lot of creditors these days will expect you to contribute some or all of your disposable income as well, on the basis that they will assume that you have benefitted in some way from the debts. Whilst you may feel that this is unfair, your wife ought to take advice from the firm she has chosen to represent her in this regard.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

While I can see where creditors are coming from, I think it's very unfair to expect a partner to contribute all of their surplus.

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Thanks for all your advice my will will clarify with her IP firm, we just wanted to check 1st on the forum.

Hi
I can see both sides of the coin on this topic,however creditors will have the final say and as Melanie states this seems to be moving towards joint incomes and joint disposible incomes even if for only one persons debt.Maybe an area that should have formed part of the soon to be introduced protocol ?

Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

There is a legal process where a partner can separate themselves form their spouse's liabilities.



Dave Beech

Hi
The only problem is that the creditors could simply vote against the IVA if they felt that the disposible income available had been reduced,even if legal processes had been used.That's why I say that they will have the final say on this matter unless it becomes protocol
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp