Hi folks - first time today.I'm in the IVA - my wife isn't.Despite me incorporating all of the joint bank acct debt into the IVA the bank have now issued court proceedings against my wife for the full amount.My IVA practs are not responding with any advice so far and we are worried.Any advice would be appreciated. Thanks
Unfortunately - with joint debt the other non IVA person will be chased for all the joint debt.- this is normal!!!
You wife need to communicate with the banks etc - with a view to coming to some arrangement to pay these off - another alternative is, you wife enters a debt plan
You need to speak to your IP as soon as possible. I may be wrong, but I think that your wife is both jointly and seperatley liable for the whole of this debt ie. when one can't pay, they will come after the other for this amount. Was this not explained by your IP? Did they know that the bank account was joint when setting up your IVA? I hope someone with more experience or an expert of the forum can advise you appropriately.
KayKay - in joint accounts etc - both parties are legally joint liable (with exception of credit card - as you dont get a joint credit card)so if one person enters an IVA - the Banks etc will come after the other person for the whole debt (not just half)
So the other person has to,needs to have repayment plan in force to pay the joint debt
All good advice above - you are always both liable for joint debts and your wife will have to either continue making the full payments or come to some arrangement with the creditor.
Hope you can get something sorted out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
ginger3232 wrote:
KayKay - in joint accounts etc - both parties are legally joint liable (with exception of credit card - as you dont get a joint credit card)so if one person enters an IVA - the Banks etc will come after the other person for the whole debt (not just half)
So the other person has to,needs to have repayment plan in force to pay the joint debt
Thank you for explaining that. Hope I haven't mis-lead the OP, and if so I apologise.
Hi TP...as the others have said, your wife is liable for maintaining full monthly repayments on any joint debts. If she can't meet these commitments as and when they fall due, then she needs to speak to a debt adviser too. The way joint debts work is that the iva partner makes contributions which come off the total owed (and so shorten the term) while the non-iva partner meets the full monthly payment.
Can your wife speak to the bank informally to come to an arrangement with them?
Hi
I too have a joint bank account with my hubby which has an overdraft, I'm not going into the IVA only he is, the overdraft is being included in the IVA and I assume that I have to make a contribution each month to the overdraft as half of it is my debt. would I have to agree an amount to pay back each month with the bank? I suppose I would really rather than just pay any amount.
the IVA has not been set up yet, just at the early stages sorting paperwork out etc
thanks
I think you will have to come to an agreement with them to pay a specific sum back. They will chase you for it once the IVA is up and running.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Joint and severally liable is the term meaning both parties are responsible for all of the debt. Meaning basically if one partner enters an iva and includes a joint loan,the other partner not entering the iva is expected to pay the whole loan back as well as them getting something out the iva!!
An IVA company who has not explained how joint debts are debt with should be shot!!! Deciding on an IVA should be made with full knowledge of whats being entered into,and its a pity so many people discover too late some of the down sides to using an IVA to solve debt problems.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi - once your husband's iva takes care of his liability for the joint debt you will become liable for repayments on the full amount owing. As I said above, his contributions will reduce the total owed but the monthly management of the full debt will fall to you. So you'll need to come to an arrangement with the bank to repay to overdraft. As one of the professionals has said, with joint debts the lender gets the penny and the bun. This doesn't mean you will pay the debt twice as when your monthly payments plus your husbands contribution total the full amount owing then the debt will be wiped out. Speak to your husband's IP to make sure this is taken into consideration for your expenditure. x
Hi thanks I remember now I was told that I would need to make a payment sorry so many things going through my head right now and I have just checked the I&E has been included, this is all new to me x
At least it is included Jo - one less thing to worry about.
Ask away at any time with any queries, someone will always be around to help.
We've all been where you are now.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Jan
It's just so daunting at the moment its all I can think about, as I'm off work this week I'm trying to sort most of it out changing bank accounts etc, now that's a nightmare both salaries get paid into the one with the overdraft so Ive got to work it all out when to transfer all the direct debit etcs but I can't do that until hubby is added on to my account (I have a current account at Nationwide didnt use it but going to now- with no overdraft I must add although they did try to make me have one yesterday but I insisted that I did not want one) He gets paid on Friday I was worried that as soon as the bank find out he is going down the IVA route they will stop us using the account so need to get the other one sorted soon.
did u all find this a problem??
Jo.58 - a lot of basic accounts you can do by telephone - often within a day or so you know the account number etc .
As far as you wages are concerned - withdraw all you money from the old account and transfer to new account - often if you you use on line this can be done within a few hours.
Also the easier way if found was to write all MY DD on a bit of paper + date then ring each company with your new account details - most if not all with take the telephone instruction.Also look at your dates and change them to more suitable ones if need be
Last edited by ginger3232 on Tue Aug 02, 2011 1:38 pm, edited 1 time in total.
