Joint - Non Homeowner - Lump Sum IVA
A Joint IVA, or interlocking IVA, helps two people who are living together, that are experiencing financial troubles, deal with their unsecured debts by pooling their joint financial resources.
They could be married, partners, family or just friends, it doesn't really matter, so long as they fulfill the main qualifying criteria of living together whilst sharing the expense of a 'joint' household budget.
Nor it is important whether the unsecured debts are joint names or in sole names, as this type of IVA tackles both categories equally well and at the same time.
Often, a joint IVA will often provide a solution to couples who might otherwise be unable to apply for an IVA as individuals. Perhaps because individually they have insufficient levels of debt or maybe they wouldn't have been able to afford their IVA repayments under their own steam.
Creditors also see the benefits provided by joint IVAs, as these types of IVA tend to be more cost efficient that two stand alone IVAs, with creditors enjoying big savings on the Insolvency Practitioners costs.
We describe this IVA as a 'Non Equity' IVA because it is suitable for people who are renting their home. As such, the IVA will have the benefit of being less complicated, for it will not have to deal with the introduction of equity as part of the arrangement.
A Lump Sum IVA would normally favour people who would struggle to afford any ongoing monthly payments towards an IVA, yet have access to a large enough sum provided by a 3rd party or possibly the sale of an asset that they can offer as full and final settlement of their unsecured debts.
Lump Sum IVAs are very popular with both applicants and creditors alike. Creditors benefiting from the debt payment in one fell swoop, whilst the advantage to the applicant being that their debt is wiped out instantly, which can be invaluable if you have recently experienced a recent reduction in income or an increase in expenditure, say after the birth of a baby.
The Lump Sum IVA has all the benefits of a fixed term IVA, providing the usual benefits, such as a guaranteed freeze in interest whilst stopping all other creditor charges and blocking creditors legal action.
Summary:
This type of IVA allows two people living in rented accommodation, a chance to become debt free with a single payment. It provides a legally binding agreement which ensures their creditors are legally obliged to write-off any outstanding balances that were left unpaid by the Lump Sum, leaving the applicants completely debt free.
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.
We invite you to request a confidential consultation by simply submitting your details in the form provided, with a preferred time for us to call you back.
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.
Which type would be suitable for you?
