IVAs for Individuals
IVAs for individuals are just that, IVAs prepared to deal, specifically, with an individual's debt problem.
This type of IVA tends to be more straightforward in comparison to a joint IVA, the type of IVA for couples.
Tackles All Unsecured Debts
People who fall into this category would, typically, have debts in their sole name, although this type of IVA will also tackle the personal liability to any joint debts that may also be owed.
The IVA will only be able to remove the personal liability of the IVA applicant, however, which means that the other party to the debt will still remain personally liable for repayment of any outstanding balance on that joint debt.
Unfortunately, it isn't possible to pick and choose which creditors you included in your IVA, as all creditors must be treated equally and none should be given preferential treatment.
So it's advisable to discuss the implications of entering into an IVA with the other party before your IVA begins. This will give them time to prepare a strategy to deal with their remaining liability to the joint debt with that creditor.
Will it affect my partner?
Individuals looking to enter an IVA will be pleased to learn that their IVA will have no impact of their partner's credit rating, so long as their partner is not party to any of their debts.
A husband can enter an IVA without his wife needing to follow suit, and vice versa.
But there will be implications with regard to any joint assets that you may own and the IVA will require a degree of compliance from your partner if you are homeowners.
Will it affect the people I live with?
Similarly, an IVA will not impact the credit ratings of the people you live with, whether you are sharing a home with someone, either buying, renting or even living with a family member or parents.
Often, a major concern for people considering entering an IVA relates to the people they live with. They feel that it would be unfair if someone not party to their debt was made to contribute towards the repayment of their IVA.
For this reason, particular attention is paid to any shared household budget and every effort is made to ensure this doesn't happen.
For further clarity on this issue, or any information regarding this type of IVA, please call our IVA team on 0800 856 8569.