Does my partner have to contribute to my IVA?

Whether the debt is solely yours or shared with your partner, you will be the only one responsible for making monthly IVA payments, and your partner will not be required to contribute.

However, in the case of an interlocking IVA, your partner must contribute to the monthly payments for the arrangement to succeed. It’s important to note that if you separate from your partner during an interlocking IVA, the entire arrangement may fail, but you will still be expected to repay the remaining balance.

Therefore, it’s crucial to consider the long-term impact of the debt solution you choose before proceeding.

Will my partner become responsible for household bills when I enter an IVA?

Upon entering an IVA agreement, your monthly payments are tailored to suit your financial capacity. If you share a household with a partner, an income and expenditure assessment will be conducted to determine the appropriate payment amount. This process involves deducting your and your partner’s total household expenses from your combined monthly income.

As the IVA payment is calculated in this manner, you can confidently manage both daily and monthly expenses prior to accounting for your IVA payment. Consequently, your partner is not burdened with the responsibility of covering household bills.

However, if your partner earns more than you, they may be required to contribute more towards household expenses. This possibility will be identified during the income and expenditure assessment and thoroughly explained to both parties before initiating payments.

Joint Financial Accounts and Their Impact on Your Partner’s Credit

The only circumstance in which your partner’s credit might be affected is if you both have joint financial accounts. Examples of this could be a shared bank account or joint debts included in your IVA, such as a combined loan or overdraft.

Since this creates a financial connection between you and your partner, your IVA may also impact their credit rating.

Will the home I own with my partner be affected by my IVA?

As the sole homeowner, releasing equity from your property might be necessary when entering into an IVA agreement. However, if the property is co-owned with your partner, both parties will be affected, and the entire property will be subject to the arrangement.

Discussing the IVA terms with your partner before committing to any debt solution is crucial. While it may not seem significant initially, addressing this issue can prevent future complications, such as your partner’s refusal to release equity, leading to the failure of your IVA.

We understand the importance of clear communication and informed decision-making at IVA Helpline. By ensuring that both you and your partner are aware of the potential consequences of an IVA, we aim to provide accurate and reliable guidance throughout the process.

Where can I get more advice on IVA’s and the debt help available?

Explore your financial options and receive the assistance you need to manage your debt effectively by reaching out to IVA Helpline by clicking on the check if you qualify button today.