The popularity and viability of joint IVAs is due to significant costs saving, in comparison with the amount spent if applying for a single IVA. In truth the departing point for a joint IVA are still two IVAs registered as separate. Only after the creditor has accepted them, will they be treated jointly. This way the costs will be reduced because of the data being common to both parties. This is a deal doubly worth the pain: for the parts signed up, it means cutting on the fees owned to the creditors; for the latter it means more money from the fund.
In order for you and your partner to be accepted for a joint IVA, you should qualify for it on the basis of criteria such as:
- Your debt must be unsecured and not lower than £15,000
- You must owe debt to more than two different creditors
- You must be employed
- Your repayment of the debt must be at least 25% of it
- The income being at your disposal should cover for the payment of the 25% and of the supplementary costs.
When applying for a joint IVA, there are important steps to be followed, the knowledge of which can make your enterprise more secure:
- Contact a debt management company
- Give the company information about your and your partner’s financial situation : income, costs, debts, and so on
- The insolvency practitioner of the company will discuss with you your options
- If your situation is compatible with a joint IVA, then your case is started
- The insolvency practitioner will offer you an IVA proposal, which you should sign if agreeing with it
- This IVA proposal will be forwarded to your creditors for them to accept it
- If the IVA proposal accepted, you will start repaying your debts, as agreed in the official acts
- After having successfully completed your joint IVA all your remaining debts will be erased.
What remains to say before closing this theme is that joint IVA is a success only due to a team work, the one existent in marriages. This is not to say you should marry someone or else you’ll be bankrupt. It simply means that you should be careful with whom you make an alliance. Five years is like a nice ocean breeze when spent in a joint debt with the perfect partner, but a never-ending storm when you rely on an inconsequent person. No one needs to remind you the ugly part and the complications of a joint IVA given up by your partner. Regardless the nature of your partner, there are some downfalls that have to be taken as granted:
- Like all substantial commitments, a joint IVA will leave you with little disposable income as well.
- Whenever there is an increase in your income, it has to be used for this purpose.
- At half way through the year, homeowners are required to release some of the equity in their home.
- Being a form of insolvency, Joint IVA will leave stains on your credit rating.
This ship can only come to shore if the team works together, or else it is likely to go down.
