IVAs for Individuals
IVAs for individuals are just that, IVAs that are proposed to deal 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
This type of IVA helps individuals deal with all their unsecured debts, whether they are just in their sole name or liabilities owed to joint debts.
When joint debts are included, the IVA only deals with the liability of the IVA applicant, which means that the other party will still remain fully liable for any outstanding balance on that joint debt.
Unfortunately, it isn't possible to pick and choose which creditors you included in an IVA, as all creditors must be treated equally.
So it's advisable to discuss the implications of entering into an IVA with any other interested party before your starting the IVA application. This will give them time to prepare a strategy to deal independently with their own liability to the joint debt.
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.
But there will be implications with regard to any joint assets and the IVA process will require a degree of transparency between joint 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, be that 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.
