{"id":790,"date":"2013-12-13T15:07:40","date_gmt":"2013-12-13T15:07:40","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=790"},"modified":"2019-01-28T15:11:11","modified_gmt":"2019-01-28T15:11:11","slug":"joint-iva-for-a-couple","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/joint-iva-for-a-couple\/","title":{"rendered":"Joint IVA for a couple"},"content":{"rendered":"\n

An IVA is an Individual Voluntary Arrangement<\/strong> and under the Insolvency Legislation a couple cannot offer a joint proposal to its creditors for an IVA<\/strong>. <\/p>\n\n\n\n\n\n\n\n

For the purpose of this short article we will assume that the couple are co-habiting and may or may not be married. However, each partner may individually offer to their creditors a proposal for an IVA, provided they are both insolvent. In other words two proposals are offered to creditors one from each partner and these two proposals are often described as being interlocking, insofar that creditors must approve both sets of proposals. In interlocking IVA proposals, if creditors approve one proposal and reject the other, then both sets of proposals are deemed to have been rejected. <\/p>\n\n\n\n

\"Couple<\/figure><\/div>\n\n\n\n

Such proposals recognize the mutual financial dependency of the \npartners. Typically, each partner will have his or her own personal \ncreditors and the couple may have one or more joint creditors. Each \npartner may have their own assets such as a car and they may jointly own\n assets such as a house. The statements of affairs of the partners \nprovided in each of their IVA proposals will therefore differ to some \nextent in relation to liabilities and assets. Usually however, the \nStatement of Affairs contains a joint Income & Expenditure statement\n in which the joint living expenses of the couple are met on a basis \nproportionate to each partner\u2019s individual income. For example, if one \npartner\u2019s net income (after tax & NI deductions) is twice that of \nthe other partner, then the joint Income & Expenditure Statement \nwill show one partner paying for two thirds of the household expenditure\n and the other partner paying the other third. The calculation of each \npartner\u2019s disposable income (DI) will result in the higher earning \npartner\u2019s DI being twice that of the lower earning partner.<\/p>\n\n\n\n

From the point of view of creditors such interlocking proposals for \nIVA\u2019s will often be attractive, since the administration costs will \nusually be significantly lower than they would be if each partner were \nto offer a proposal for a \u2018stand alone\u2019 IVA. There are also benefits of \nsimplicity where jointly owned assets (such as the equity in a house) \nare dealt with on a mutual & similar way, which might not be the \ncase in two \u2018stand alone\u2019 IVA\u2019s.<\/p>\n\n\n\n

In a scenario where one partner is solvent and the other is insolvent\n an approach frequently taken is for the insolvent partner to offer a \nproposal for an IVA with the financial assistance of the solvent \npartner. In such cases the solvent partner would have to retain \nsufficient DI to service his or her personal and joint debts on a normal\n ongoing commercial basis, but could contribute any remaining DI to the \nIVA of the insolvent partner. Such an IVA is frequently described as an \nassisted IVA. When such an assisted IVA is complete and the insolvent \npartner is issued with a Certificate of Due Completion, it is important \nto remember that the solvent partner continues to be liable for any \nbalances of joint debts remaining unpaid.<\/p>\n","protected":false},"excerpt":{"rendered":"

An IVA is an Individual Voluntary Arrangement and under the Insolvency Legislation a couple cannot offer a joint proposal to its creditors for an IVA.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-790","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=790"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/790\/revisions"}],"predecessor-version":[{"id":813,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/790\/revisions\/813"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}