Joint Liability with my wife on a debt in MY IVA

[St1973]

Hopefully someone can give me some advice and help as my IVA supervisor wasn't very helpful.

 

I have recently entered an IVA, which includes a 6k overdraft debt with the RBS. My IVA is 100p in the pound so they will receive the full amount. Since my IVA has started, the RBS have been vigorously chasing my wife for the FULL amount. I lodged a complaint as such and they responded simply by stating procedure.

 

How can they claim a debt in full twice? Surely I can reason with them if reasoning is in their vocabulary!

 

Any help would be appreciated as she is physically stressed about this as the repercussions threatened could have her sacked.

 

Thanks

[citizenB]

I will try and find someone who can help.

 

It is my understanding that a joint debt will be pursued through both parties - but it does seem unreasonable in this instance if the Debt has actually been included (in full) in your IVA ?

[St1973]

Thank you. I just think it is unreasonable to pursue the debt twice when an agreement has been reached already.

[dx100uk]

as far as im am aware

you including the debt in an IVA doesn't 'wipe it out'

not until the IVA is completed and you are discharged etc etc

 

 

its a joint debt so your wife and yourself as pointed out by CB are equally responsible for paying the debt off until it does not exist

[balance paid or fully settled under the IVA]

[St1973]

I appreciate that but my point is that why are they not satisfied with the IVA?

They agreed to it and given its a 100p in the £ agreement they are acting unreasonable.

 

I've seen a few cases in the FO website of similar circumstance

and the FO has upheld the complaints and made the banks back off and remove defaults.

Maybe that's a line I should try?

[fkofilee]

QQ to OP - Is the account a joint account?

[dx100uk]

yes

[dx100uk]

I appreciate that but my point is that why are they not satisfied with the IVA?

They agreed to it and given its a 100p in the £ agreement they are acting unreasonable.

 

I've seen a few cases in the FO website of similar circumstance

and the FO has upheld the complaints and made the banks back off and remove defaults.

Maybe that's a line I should try?

 

 

if that's the case then go ring them and ask.

[fkofilee]

Stuff For OP

 

Joint debts and IVAs

If you have a joint debt and enter into an IVA, the other person named on the debt will still be responsible for making payments towards it. This is called joint and several liability, and means that the debt is owed jointly between you and the other person named on it. If you have some of the debt written off, the other person will still be asked to pay the remaining money back.

 

If you have joint debts and are thinking about entering into an IVA, you should contact us for some advice first, so that we can let you know how it will affect you and the other person named on the debts.

 

If you need more information about IVA debt solutions, you can get free, impartial advice from us. Our online Debt Remedy tool can recommend the best debt solution for your situation and tell you if an IVA is suitable for your circumstances.

 

http://www.stepchange.org/Debtinformationandadvice/Debtsolutions/Individualvoluntaryarrangement/JointIVA.aspx

 

Im sorry if this isnt what you wanted to hear, however, Stepchange are normally quite on the ball with this stuff and they are technically correct.

RBS are not asking for the debt twice, they are asking for the debt to be paid and i think thats the clincher here.

 

Have they fully accepted your IVA? If so and you have proof of that then can you let me know. Might beable to draft something if required.

[BazzaS]

Hopefully someone can give me some advice and help as my IVA supervisor wasn't very helpful.

 

I have recently entered an IVA, which includes a 6k overdraft debt with the RBS. My IVA is 100p in the pound so they will receive the full amount. Since my IVA has started, the RBS have been vigorously chasing my wife for the FULL amount. I lodged a complaint as such and they responded simply by stating procedure.

 

How can they claim a debt in full twice? Surely I can reason with them if reasoning is in their vocabulary!

 

Any help would be appreciated as she is physically stressed about this as the repercussions threatened could have her sacked.

 

Thanks

 

Did the overdraft agreement make you and your wife "jointly and severally" liable?.

 

If so, they don't have to get "50% from you, 50% from your wife", they can go after one of you for the whole sum.

 

Additionally, an overdraft is repayable "on demand".

 

So, they only get to get the amount back once, but can go after your wife so they don't have to wait for it to be repaid in the IVA ...

[St1973]

My IVA is 100p in the £ and I have already made payments.

 

The RBS agreed to the IVA so what are they expecting?

 

Does this make my IVA invalid?

 

If I pay the RBS through the IVA for 100% and my wife pays when do I get the surplus back?

 

Surely some sense needs to be seen here.

 

My wife doesn't work so what can she offer as our income has been assessed

so we can give the maximum IVA payment.

 

I can't afford anymore and the RBS agreed that by accepting the IVA.

[dx100uk]

how can we explain it clearer....

 

you are both equally liable for the joint debt.

 

until it is paid off or 'nulled' shall we say by the completion of your IVA

 

there is a balance outstanding against both of you,,,

 

the 'fact' that 'you' have entered into an IVA

that

on completion or discharge 'wipes any included debts out'

does not change the current position.

 

you would not be expected to pay more than the outstanding debt at the time of completion

neither would your partner

the 'total' balance needs to be met by 'both of you'

 

it would not be paying 'twice on the same debt'

 

unless they get a CCJ on here it will not threaten her employment.

 

so taking the IVA/RBS/you aside

 

what silly letters has she been getting and from 'whom'?

 

scan them up