When you get an Individual Voluntary Arrangement (IVA), only your assets should be used to repay your debt. This article answers the question: How does an IVA affect my spouse? And explains what information may be needed from your spouse.
You may also want to read our article on how an IVA affects your partner.
How does an IVA affect my spouse?
In an IVA only your assets should be pledged towards your debts. Your spouse’s assets should be safe unless, for example, it can be proven that you have been hiding your money in their account. As long as you are truthful and are sticking to the terms of your arrangement you should be fine.
Do I need to declare my wife’s overdraft when applying for an IVA?
Your IVA proposal may have been based on all of the household income and expenditure, or just your share, illustrating how much you have available to pay towards your debts after all essential living costs have been covered.
If there is additional income into the household, it is likely that your proposal states that you will need to inform the Supervisor of your IVA. This may make a difference to the offer made to creditors, or it may make no difference at all. The safest option would be to speak to the Insolvency Practice supervising your IVA. If there is no need to make a change to your IVA they will let you know, if this does make a difference they will let you know. If you do not tell them and it comes to light later that you should have done so then you risk breaching the terms of your IVA.
What happens with a Joint IVA agreement after the death of a spouse?
You will need to contact the Insolvency Practitioner (IP) who was supervising your IVA to see how it will finish. The IVA could be satisfied or could fail depending on the specific details of your case. If your IVA is failed then you will owe the debt remaining and you can have a fresh look at your options for dealing with the debt.
It could be that an arrangement to pay is needed or it could be that a bankruptcy or a debt relief order is best suited to deal with the remaining debt.
Please note, that IVAs are never joint, but you can have two IVAs that are ‘interlocked’ so that they are administered together. The death of a spouse does not in itself usually require the failure of an interlocked IVA, but whether you can continue your IVA will depend upon your circumstances.
Please see our article on what happens to an IVA when you die for more information.
Can I refuse to provide my private details for my wife’s IVA?
Your wife will need to place this question with the IP who is supervising her IVA.
You do not have to provide any information at all if you do not wish to, you cannot be forced to provide information but the consequences of this would not really be possible to determine here. The IVA was set up to allow your wife to pay back as much as possible of the debts owed but without the worry of interest, charges or further pursuit by creditors.
It may be that your wife’s IVA cannot continue unless the IP can provide proof that your wife pays her fair share of the bills. Similarly, it could be that creditors believe she can pay more, or that the IP is now showing that she can pay a lot more into her IVA when in fact it is needed by her to pay the fair share of the household bills.
It could be that, without some form of disclosure, the IVA fails and she starts to be pursued again for the debts.
What percentage of my wife’s income will they want for my IVA?
Your wife’s earnings are hers and nothing to do with your IVA. As is her bank account and other finances. If you own a home together it could get more complicated as there may be equity in the house.
Will they take my caravan off me for my Husbands IVA?
An IVA is a proposal to the creditors, it is an offer to them, they cannot take things, This usually means offering a monthly payment for a period of time and then the IVA finishes and any debt remaining does not have to be paid back. Sometimes a person also offers assets as part of the IVA process, so that they are able to offer a reasonable proposal.
This could be a car, caravan, boat or could be to remortgage a house. In this situation, your husband will not be able to offer the caravan to them as it is not his asset to offer and you cannot be forced to sell your things to pay for someone else’s debts.
For more information, please read our article on caravan finance and site fees.
Does all of a joint cash payment have to go to husbands IVA for PPI debt?
Your husband’s IVA deals with any asset value that is available to him at the start of the IVA or becomes available during the term of the IVA, to include or exclude from creditors. The PPI policy will state details of who is named to the PPI policy and who it is payable to. This could be both of you or just your husband.
He needs to inform his IP and provide details of the PPI claim and award to allow the IP to identify the amount that is available to his creditors. His creditors have no claim on any money that is due to anyone else and they are free to do with that money whatever they wish.
Husband paid off his IVA, why am I being chased?
You are jointly and separately liable for any joint accounts and debts. So whilst your husband may have satisfied his creditors for his debts through an IVA, you are still liable as well. If you feel unable to deal directly with the organisation, contact a free debt advisor who can help you make arrangements for payment.
Can my wife apply for an IVA, while I am on mine?
The IVA is an Individual Voluntary Arrangement and deals with an individual’s liability for their unsecured debts. Your wife is able to use the most appropriate solution to deal with her debts. If this is an IVA then it will have no impact on you.
I’m getting divorced, how will this impact my IVA?
You need to speak to your IP and update them on the changes of circumstances. They will review your situation and can advise how it will be possible to proceed.
It may be that your IVA can continue with a higher, or lower, payment. Or it may be that there is no ability to pay anything further into the IVA other than from the sale of a property you own.
Can my ex-husband get a bank account, if I am on an IVA?
Your IVA is personal to you. It deals with your credit commitments and your liability for any joint agreements.
The times when one person can affect another person’s credit rating are few. This is usually when there is a joint financial commitment or an error. If a joint loan is dealt with in an IVA, then it is only one Individual’s liability for the debt that is being resolved. This can mean that £10,000 is owed jointly and the IVA pays back £2,500.
The other person named on the agreement could still be liable for the remainder of the loan, which could be £7,500
Your ex could get a copy of his file from Experian, Equifax or Callcredit. Here he will be able to see exactly what is listed. If there are any errors to correct he will know. He can also ask the credit reference agency to disassociate anything that is showing related to you.