Hi there.
I have been in an interlocking iva with my partner for 2 and a half years. My partner and I on on verge of break up. Ive asked my iva company to split iva so I can pay off my debt (family giving me the money)
Iva have refused to split and allow me to pay off money I owe in full! They say it is not in their policy and my partner and I will have to "fail" the iva. They have written a letter to this effect. Can this be right? I am asking to pay my debt off in full and leave my partner on iva?
Who are you with? I thought IVAs were individual as the name suggests. Your proposal should be what is followed not their policy, was that just in your name?
Hi. It is in joint names but they are "interlocking". It is with grant thornton. They insist it is impossible to split as its not in their policy. They have informed me the only solution they can offer is to fail and my partner to reapply for a new iva in his own name. Im appalled this is our only solution available after 2 and a half years of payments!
As Michael says, insist on getting their actual reasons direct from your IP.
Rather than allowing the IVA to fail, when the split occurs you would have to do revised I&Es as you will be maintaining separate households, so the payment might be reduced by variation, which would allow you and your then ex to salvage the IVA's and follow them to term.
Indeed, in my case the revised I&E showed we could no longer make any payment and my IP called a variation to ask the creditors to accept payments made to date and "call it quits", which was accepted.
A helpful IP can always explore other options. The case worker you were speaking to might not be so motivated!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for that info foggy. I will try again to talk to an ip but so far my efforts have been unsucessful. We have missed 2 payments now as did not see the point of paying when we've been encouraged to fail! (Never missed a payment previously)
As I stated earlier tho, I do have a letter from grant thornton stating they no longer "split" joint ivas. So don't hold much hope
Hi. My debt was 12,000 but one creditor dropped their claim which took it to £3500. My partners was 17,000. That is why I am now in a position to pay mine off. I will try again to talk to my ip but have had no success so far. They are insistent it is a new policy of theirs. Did not know iva companies could just write their own policies after youve signed up to an iva??
All depends upon the personal relationship after the split, Michael. Some interlocking IVA's will both fail automatically on the failure of one (depending upon how they were drafted, of course). This could sour an already strained state of affairs.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
True Foggy. Maybe a better option would be to offer the £3,500 as full and final for both IVAs given that the clients are splitting up. Running two homes will probably wipe out any surplus anyway so creditors may agree to close both.
Hi. Is it me but cant understand why I cant just pay my creditors off. Get removed from iva. My partner then can fill in an income/expenditure for himself and carry on with iva we've paid into. Why should he have to lose 2.5 years of an iva hes paid into. Iva companies need to negotiate with clients for best outcomes. They get paid alot of money to handle ivas but make it virtually impossible to talk to an ip. Encouraging us to "fail" because of a "new policy" theyve introduced leaves a bad taste in my mouth!
