{"id":9863,"date":"2011-02-02T14:49:35","date_gmt":"2011-02-02T14:49:35","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=9863"},"modified":"2021-05-06T16:00:34","modified_gmt":"2021-05-06T15:00:34","slug":"iva-and-marriage","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-and-marriage\/","title":{"rendered":"IVA and Marriage"},"content":{"rendered":"\n

How will an IVA affect my Marriage?<\/h2>\n\n\n\n

Whether you are already married or just contemplating getting \nmarried, if you have financial problems bordering on insolvency, it \nmakes sense to consider the effects of the various solutions on your \ncurrent or future spouse. Here we will look briefly at the Individual \nVoluntary Arrangement (IVA) solution and the concerns that married (or \nco-habiting) people sometimes have about it.<\/p>\n\n\n\n\n\n\n\n

An IVA is what it says on the tin \u2013 an Individual<\/em> Voluntary Arrangement. That being the case, your spouse would not be liable for your debts. Creditors could not pursue your spouse to address your debts. Nor could they seek to satisfy these debts by going after your spouse\u2019s property. Even if you and your spouse have some joint debts, creditors can only pursue your spouse for re-payment of the joint debts. What if your spouse is also insolvent with his or her own debts?<\/p>\n\n\n\n

Interlocking IVA<\/h2>\n\n\n\n

Under the Insolvency Legislation a couple cannot offer a joint proposal to creditors for an IVA. 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.<\/p>\n\n\n\n

In interlocking IVA proposals, if creditors approve one proposal and reject the other, then both sets of proposals are deemed to have been rejected. Such proposals recognize the mutual financial dependency of the partners. Typically, each partner will have his or her own personal creditors and the couple may have one or more joint creditors. Each partner may have their own assets such as a car and they may jointly own assets such as a house. <\/p>\n\n\n\n

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

The statements of affairs of the partners provided in each of their IVA proposals will therefore differ to some extent in relation to liabilities and assets. Usually however, the Statement of Affairs contains a joint Income & Expenditure statement in which the joint living expenses of the couple are met on a basis proportionate to each partner\u2019s individual income. For example, if one partner\u2019s net income (after tax & NI deductions) is twice that of the other partner, then the joint Income & Expenditure Statement will show one partner paying two thirds of the household expenditure and the other partner paying the other third. The calculation of each partner\u2019s disposable income (DI) will result in the higher earning partner\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 \nIVAs are often attractive, since administration costs will usually be \nsignificantly lower than they would be if each partner were to offer a \nproposal for a \u2018stand alone\u2019 IVA. There are also benefits of simplicity \nwhere jointly owned assets (such as the equity in a house) can be dealt \nwith in a mutual and consensual way, which might not be the case in two \n\u2018stand alone\u2019 IVAs. <\/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 voluntarily contribute any \nremaining DI to the IVA of the insolvent partner. Such an IVA is \nfrequently described as an assisted IVA. When such an assisted IVA is \ncomplete and the insolvent partner is issued with a Certificate of Due \nCompletion, it is important to remember that the solvent partner \ncontinues to be liable for any balances of joint debts remaining \nunpaid.  <\/p>\n","protected":false},"excerpt":{"rendered":"

Under the Insolvency Legislation a couple cannot offer a joint proposal to creditors for an IVA. However, each partner may individually offer to their creditors a proposal 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":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-9863","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\/9863","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=9863"}],"version-history":[{"count":4,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/9863\/revisions"}],"predecessor-version":[{"id":13570,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/9863\/revisions\/13570"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=9863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=9863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=9863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}