The short answer is yes – in certain circumstances you can enter an Individual Voluntary Arrangement (IVA), without your partner’s knowledge, provided of course that you are insolvent.
Creditors normally like to see a proposal for an IVA outlining all of the household circumstances which contributed to a debtor’s insolvency. They also like to see verification of the total family income to ensure that the household expenditure is fairly shared between both partners – usually in the same ratio as their earnings. This can be tricky to provide if you cannot confide in your co-habiting partner in regard to your financial difficulties or are reluctant to do so. If you and your partner jointly own assets, such as the family home or if you have joint liabilities, such as an overdrawn joint current account, these factors make it more difficult to keep your partner from learning of your IVA. There are many other practical difficulties.
However, there are some obvious scenarios where entering an IVA without the knowledge of your co-habiting partner would be possible and creditors would be sympathetic to such an approach. One such circumstance could be where your partner is seriously ill and would suffer unduly from the stress of learning of your financial difficulties. Such illness could be mental or physical. Another circumstance could be where there is a serious risk that your partner might react violently towards you or your children on learning of your financial difficulties and insolvency.
There are other such circumstances. Creditors of course would have to be satisfied as to the bona fides of such circumstances and that your partner did not benefit significantly from the spending which led to your insolvency. There is no guarantee that your partner will not inadvertently learn of your IVA during its term which could run for up to five years and sometimes more. You need to consider the effect on your relationship if that should occur.
If you find yourself in circumstances such as in the examples outlined above, a good initial course of action is to consult with a reputable Insolvency Practitioner, otherwise known as an IP. Your circumstances will be treated confidentially and your IP will be able to advise you not just on the merits of an IVA but also on all of the other options available. Your partner will not be informed of your actions without your express consent.