This article answers the question: Can an IVA Affect My Partner? And explains whether or not your partner’s income will be considered in an Individual Voluntary Arrangement (IVA).
Can they use my partner’s income to pay off an IVA?
The simplest answer is that your partner can make an offer to do this if they wish, there is nothing to stop them making an offer. However, it is not possible to say what the outcome of that offer would be without having an in-depth knowledge of your IVA. And even then it may be that your Insolvency Practitioner (IP) cannot answer this as your creditors may need to agree to this.
The best thing to do will be to contact the IP supervising your case and ask them if this will be possible and if so will it fully resolve your current situation.
Can they take my partner’s wages for my IVA payments?
Your partner’s wages cannot be taken into account but the IVA company may want to reassess your position, as you are no longer solely responsible for all your household bills. You must update the IVA provider of your change in circumstances. You have a legal duty to notify IVA supervisor of changes and to not do so could result in IVA failing.
My partner is refusing to disclose their income & expenditure on the IVA forms, what can I do?
You will need to speak to your IP and ask them this question. The answer could be that it does not matter at all or it could be that is means that the IVA fails, without knowing the details of your proposal and the history of your case it would not be possible to say with any degree of accuracy.
My ex-partner used my address for their IVA, will it affect me?
If you do not have any link financially then there shouldn’t be anything that has an impact directly on you. If you do have, or previously had, any financial ties then you may wish to check with the credit reference agencies to see if any details show on your file about your ex-partner as a financial association, just living in the same house does not mean that you are financially connected.
I want to get an IVA, but can I leave out a joint mortgage with my partner?
All income and expenditure must be declared in an IVA. Secured debts like mortgages are not included in the list of debts the IVA will tackle. Your share of the monthly payment will be included in your monthly expenditure allowance. However, You may have to release your share of any equity from the property at the end of the IVA.
Would a joint loan with my partner be included in my personal IVA?
A joint loan means that both of you are jointly and severally liable for the whole amount of the loan. If you are dealing with your liability by entering into an IVA then it does not mean that your partner’s liability has been dealt with at all. They will need to pay back all of the debt that remains after your IVA contributions have dealt with your liability. If, as an example, this loan is £5,000 and your IVA returns £1,000 to the lender then your partner will still be required to pay the remaining £4,000, unless they are also entering into a legally binding arrangement for their debts.
You may also want to read this article on Joint IVAs.