My partner and I have joint debts. Can we lump them all together in the same IVA?
There is no such thing a 'joint IVA'
We receive a lot of calls and emails from the public asking; "My partner and I have joint debts. Can we lump them all together in the same IVA?".
Money Advice Direct receives 1000’s of calls and emails from couples asking whether they can do a joint IVA. The answer is YES you can. The IVA will be linked so that they both will get approved on the same day. It is actually cheaper for the IVA Insolvency Practitioner to set up a 'linked' IVA than two separate IVAs because a lot of the details are the same.
There is no such thing a 'joint IVA'. What will happen is there will be two separate IVAs although they will share common ground and be funded by the joint household disposable income.
An IVA will only be proposed for debts over £15000
If your partners debts are lower that the £15000 minimum IVA requirement level then your partner will not be able to do an IVA. An example is where one spouse owes £30,000 and the other owes £7000.
If this situation occurs then only one spouse can do an IVA whilst the other will have to pay back the debts normally or through a debt management plan.
The creditors are very understanding of this situation are will accommodate a debt remedy to suit the household.
The reason there are two separate IVAs is for legal reasons under the 'Joint and Several Liability' rule.
If you have taken out a credit card, loan or bank account in joint names then you are both liable for the full amount of any debt. This means the whole debt will have to be mentioned on each IVA, not 50% of it.
This means that if you have a joint loan with a spouse or partner and one of you fails to repay the debt (this often happens following divorce or separation) then the lender could still ask you for payment of the full amount (not just half).
The lender cannot recover the money twice but can pursue both of you, or just one of you, for all amounts still outstanding until they have obtained full payment.
Joint and several liability can also apply to rent arrears on joint tenancies, arrears on joint mortgages, Council Tax payments and water charges on properties that have been jointly occupied.
If you and your partner have joint debts and are wondering if you can lump them all together in the same IVA please complete the following form or telephone freephone 0800 074 6918.
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- How do I work out how much I can afford to pay per month in to an IVA? |
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- IVA - Individual Voluntary Arrangement |
- I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Can I do an IVA at this late stage?
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- My partner and I have joint debts. Can we lump them all together in the same IVA?
- What happens if I'm unable to keep up with the IVA payments?
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- Are there any upfront fees with an IVA? |
- Why should I consider an IVA over bankruptcy? |
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- How will an IVA Improve my life? |
- Is there immediate relief if I do an IVA? |
- How much debt do I need to do an IVA? |
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- Can utility bills be included in an IVA? |
- Will an IVA stop collection calls? |
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- What will my monthly payment be on an IVA? |
- What if I am unable to keep up with my payments in an IVA? |
- Can my IVA payments go up? |
- Under what circumstances can I reduce my IVA payment? |
- Who will know if I do an IVA? |
- Will my landlord need to know if I do an IVA? |
- I've decided to do an IVA, should i stop paying my creditors now? |
- Will an IVA affect my employment or my ability to get a job? |
- I'm in an IVA and I've lost my job, what can I do? |
- What situations would prevent me from doing an IVA? |
- I've been told I can't do an IVA, what should I do? |
- Can I exit out of my IVA before five years? |
- Under what circumstances can an IVA proposal be rejected? |
- What percentage of IVA's are blocked by creditors? |
- What happens if my IVA fails? |
- What if I can't remortgage as per my IVA proposal? |
- My husband and I are considering an IVA as a solution to our £25,000 debt |
- What happens if I change from being employed to self employed during my IVA? |
- If my partner enters an IVA will I have to sell my car because it is registered in my name? |
- What happens if my income rises during an IVA, would the creditors want all of the increase? |
- What is the minimum level of debt for an IVA? Is it 12000 or 15000 pounds? |
- Can I keep my home if my IVA is accepted? |
- Will I have enough money to live if I go for an IVA? |
- Information on the IVA procedure in the UK |
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IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]