Joint - Non Homeowner - Fixed Term IVA
A Joint IVA, or interlocking IVA, is for two people experiencing problems in maintaining their unsecured debts, who wish to tackle their debt problem together. It is not important whether there are any shared debts, or debts in joint names, in fact the only real qualifying criteria with regard to a joint IVA application is that the applicants are living together and sharing a 'joint' household budget.
Whilst it is called a joint IVA, in actual fact it remains 2 individual yet mutually dependent IVAs. Each applicant will therefore have their own IVA and each IVA will deal with the personal liabilities of each applicant. But, because the 2 applicants share a joint budget, both IVAs become reliant on each other for a successful outcome.
The couple entering into this type of IVA will be tenants living in rented accommodation, sharing a rented house or living with family. This, actually, simplifies the terms of the IVA, as there will be no need to consider equity clause. Instead, the IVA will be evaluated solely on the return it generates to creditors purely through the money repaid via the IVA's monthly contributions over the term, without the introduction of extra monies.
This type of IVA will have a fixed term of 5 years. Both applicants will be required to work together to afford the contribution at the agreed level, for the duration of the arrangement. Each year, on the anniversary of the start date of the IVA, there will be a review of both applicant's joint personal circumstances and, if it is shown they can afford to increase their IVA payments, they will be expected to do so.
Once the 5 year fixed term has come to an end, the IVA will be considered successfully completed and both people will be completely debt free.
Summary:
This type of an IVA helps someone living in rented accommodation and consist of 5 years of affordable repayments and will deal with the both applicant's unsecured debts. At the end of the IVA's fixed 5 year term, any remaining balances from the original debts, not repaid by the IVA, will be legally written off and both applicants will be completely debt free.
To discuss this type of IVA in more detail with one of our IVA consultants simply call 0800 856 8569
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An IVA can help a single person or two people sharing joint living costs deal with their debts.
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