Joint - Homeowner - Lump Sum IVA
A joint IVA, or interlocking IVA as it is also called, is designed to help 2 people who are living together, tackle their unsecured debt problems as one. Whilst it is called a 'Joint IVA' the debts themselves do not need to be from joint accounts, as a Joint IVA deals with joint named and sole named debts equally well.
Any two people can apply for a Joint IVA, so long as they are both struggling to maintain their unsecured debts and are both living within a shared household budget. And whilst in the vast majority of cases it would be a married couple that enter into a Joint IVA together, it isn't always the case. Over the years, we've helped Mothers and Daughters, Father and Sons, Brothers and Sisters, Civil Partnerships, Common Law Partners, Flat Mates, Work Colleagues (and just about every other combination) to successfully enter into Joint IVAs. Indeed, there are no requirements needed, other than living together.
As part of the this type of IVA the couple will need to introduce a Lump Sum payment into the IVA. The IVA will consist of just this one payment which will act as a full and final settlement for all the unsecured debts included in the IVA.
The funds for the Lump Sum payment can be provided by several different means, such as the sale of an asset or the release of equity from a property, but in most cases the funds to be introduced will come from a 3rd party i.e. someone not involved with the IVA or the debts.
Creditors particularly favour funds introduced by a 3rd party as these funds would obviously not be forthcoming under any bankruptcy action taken against the couple proposing the IVA. This provides a clear advantage for the IVA option when compared to the bankruptcy option.
Once the Lump Sum IVA has been accepted by creditors, any unsecured debt left unpaid by the IVA is legally written-off by the creditors as part of the deal. They, therefore, lose the right to any future claim and, should the property grow in value in the future, the creditors cannot return to lay claim on any new equity that has developed.
Summary:
This type of IVA is suited to Homeowner couples who want to deal with their unsecured debt problems together, using a Lump Sum payment to act as a full and final settlement. Once agreed by the creditors, the remaining unpaid debts are legally written-off by the creditors and the couple are considered free of all their unsecured debts.
To discuss this type of IVA in more detail with one of our IVA consultants simply call 0800 856 8569
If you simply want to have a chat about your options, or would like to ask a question about your solution. We invite you to call us at a time that suits you on.
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If this type of IVA is not what you were look for, answer the 3 simple questions below to find the type of IVA that would suit you.
An IVA can help a single person or two people sharing joint living costs deal with their debts.
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