IVAs for Couples
When two people share a debt problem, it's sometimes possible for them to join forces and deal with the problem as a couple, rather than two individuals.
And, when the circumstances are right, they may qualify for a Joint IVA, also known as an Interlocking IVA.
Joining Forces To Deal With Your Debts
Joining forces and using the whole household’s resource to deal with a joint debt problem can sometimes be the most effective way in dealing with household debt.
It can also open up access to the Joint IVA option, where two separate stand alone IVAs may not be viable.
For example, where one applicant’s debt level might not warrant applying for an IVA on their own, combining debts with another in the same household might open the door to a Joint IVA application.
Similarly, Joint IVAs can be particularly effective where one household member generates the vast majority of the household income.
Two individual IVAs
In reality the Joint IVA still consists of two individual IVAs.
They are put in motion at exactly the same time, and last for the same duration, with each separate IVA engaging with its own set of creditors, independently from the other.
But in practice the Joint IVA behaves as if it was just a single IVA, with just one monthly payment being made to cover the contribution for both.
As a result, each IVA is mutually reliant on the other, as they are based on a common household budget.
It is, therefore, really important that both applicants appreciate how dependent they are on each other for the duration of the agreement.
For a Joint IVA to stand a chance of success, both applicants must to commit to their common position for the duration of their IVAs.
And deciding to separate mid-way through a Joint IVA could cause one or both IVAs to fail, which should be avoided at costs.
Any two people can do a Joint IVA
There is no technical requirement for the Joint IVA applicants to be husband or wife, partners or even related.
They can be any two people who happen to be experiencing serious financial problems whilst sharing a common household budget.
Also, many people who live together find it convenient to be financially linked through joint bank accounts, loans and credit cards. Obviously, this can create potential problems if they hit financial troubles.
So it will come as some relief to learn that Joint IVAs deal with 'Joint and Several' liability debts very effectively indeed.
These are debts where both parties named on the credit agreement are jointly liable for the full outstanding balance until the full debt has been repaid.
'Joint and Several' debts can cause all sorts of issues when two people with financial problems are trying to negotiate their own terms individually.
We Can Help
The team here at IVAorg are IVA specialists. Please call us if there are any aspects of the IVA process that you'd like to explore.
Our helpline is available until 10pm every evening, so call 0800 856 8569 or complete this form to speak to an adviser.
