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Original poster

Ex has taken an IVA and I need advise

22 replies

ImNewHerePeople · 18/09/2019 10:20

Me and the ex broke up years ago, we have a child together and it was amicable etc.
We have a joint loan together, but she has now took an IVA (to essentially pay her half of it) but the IVA has been logged as the whole outstanding loan.

The loan has dropped off my banking app so I can no longer see it, she has shown me paperwork confirming that the IVA has been processed for the whole loan amount against her name only, even though the loan is in joint name.

Natwest are telling me I still need to pay them the FULL monthly figure that has always been paid. If I have to do that that is fine as I don't want my credit affected, it will be double outgoings for me now as I will essentially be paying both our halves, but everywhere I turn nobody seems to have a definitive conclusive answer for what is needed or best for me here.

Any help appreciated. Thx

OP posts:

Blackcountrychik83 · 18/09/2019 10:27

My dp has an Iva... It has caused him no end of problems and he's in more debt now due to it. Your ex needs to go back to the Iva company and tell them what's going on coz surely the bank will then end up getting it paid twice.
The council wouldn't accept my dp's Iva even though the Iva company said they had to and the council have been a nightmare and took him to court etc even though he's paying the council tax thru the Iva!!

How can they want you to pay off the debt if its been took on by your ex... Seriously its all a headache because companies want payment now not little amounts over 5 years so they will pile on the pressure for you to pay it. Good luck with it!

Original poster

ImNewHerePeople · 18/09/2019 10:31

Yeah it's an absolute nightmare. It basically is that Natwest would be getting paid twice yeah. And because she has took the full loan amount into her IVA I really don't know if I should still be paying Natwest or not.

Never had any dealings with this type of stuff and it is such a new mind boggler.

OP posts:

prh47bridge · 18/09/2019 12:56

With a joint loan the bank can come after either of you for the full amount. If she never pays another penny towards the loan the bank can collect what she owes from you. So you need to continue making the payments. If she resumes payments under the IVA you can reduce your payments by the amount she pays. But you are probably going to end up paying more than half the loan.

Original poster

ImNewHerePeople · 18/09/2019 13:30

Yeah seems to be the way, although the loan doesn't exist anymore, it dropped off my app and Natwest have confirmed that the loan is closed because the ex has took the full amount on their IVA, yet Natwest have asked me to keep up payments to them via a standing order.

OP posts:

Original poster

ImNewHerePeople · 18/09/2019 13:35

Another thing that is annoying me is if the loan doesn't exist, if I stop paying it, will I get a bad credit rating? Because it doesn't exist.

It is all so confusing.

Natwest also did confirm they would not lower monthly standing order figure from me, so they are receiving that like they always have done, and also ex payment through IVA, they will be getting so much more money back than was agreed.

OP posts:

WispaGoldsshouldcomeinmultipac · 18/09/2019 13:42

It still exists Im afraid - as you are jointly liable for it they can chase either of you for it.
Your ex will be paying negligiable amounts towards it because the Iva company will prioritise sole name creditors first. It's unfair but its the way the cookie crumbles...

Sicario · 18/09/2019 13:43

You are still liable for the loan - the whole outstanding amount - because it was a joint loan and your name is on it.

She will not have to pay anything above what has been agreed through the IVA.

You do not have an IVA so you will have to pay the originally agreed amount. If you do not pay, it will affect your credit rating as you will be defaulting on the loan.

If you don't want to pay it (or can't pay it) you will also have to apply for an IVA or file for bankruptcy.

Original poster

ImNewHerePeople · 18/09/2019 13:46

I'll pay it as I don't want to ruin my credit, thanks for all the replies, they have been really helpful, more helpful than Natwest who were frankly embarrassing in regards to not having actual answers.

They were saying things like-
'It could be....'
'My guess would be that....'.

Awful.

OP posts:

Original poster

ImNewHerePeople · 18/09/2019 13:48

Also out of interest what does defaulting on the loan mean, I know it means if I don't pay it, I mean what will happen..? (I have always paid stuff).

What would happen? My credit score currently is 999, what would that drop to realistically?

OP posts:

WispaGoldsshouldcomeinmultipac · 18/09/2019 13:55

Dependant on the reference agency you look at it can be a drop of 30-60 points for a default.
They're probably not putting you through to the correct dept - the loan has been sent to the IVA people but you can explain this and ask them to send you regular statements through the post and freeze the interest.

Original poster

ImNewHerePeople · 18/09/2019 14:03

30-60 points would still leave me in the good to excellent category, part of my brain thinks that is better than paying £250 a month for 4 years :-[

What a mess eh.

OP posts:

Teddybear45 · 18/09/2019 14:12

You need to speak to Natwest’s collections department. If they are chasing you for payment then the debt still exists in joint names even if the loan has been closed.

Original poster

ImNewHerePeople · 18/09/2019 14:13

Payment is up to date because the loan has now been converted to a standing order from my account, rather than a direct debit.

OP posts:

WispaGoldsshouldcomeinmultipac · 18/09/2019 14:49

Every month you miss a payment its classed as a separate default. So if you stopped paying now, and it isn't bought by a collections agent till Aprill 2020 for example that would be 7 defaults...

Original poster

ImNewHerePeople · 18/09/2019 14:59

Ohhhhhhhh. Ok brill. Thx for your help.

OP posts:

RedHelenB · 18/09/2019 16:26

Bear in mind ivas can fail too which would leave you liable for the whole amount. I think you'll just have to accept you will end up paying it minus whatever they get from the IVA ( if she lasts the course)

Also credit scores are a bit of a myth. Banks dont look at the number you see just are you employed, paying any credit off promptly etc.Defaulting on payments would mean getting a mortgage etc would be difficult.

AndWhat · 18/09/2019 18:55

Tbh I would say if it’s possible to take out a new loan in your own name to pay this other loan off. That way you won’t have any financial connection anymore and no worry about the IVA/defaults etc.
I know it’s not right you paying the whole thing but it sounds like you will be anyway

slipperywhensparticus · 18/09/2019 18:59

My ex husband had an IVA he was told he could not put joint debts on there unless the other person agreed to be part of it

Blackcountrychik83 · 19/09/2019 03:15

My dp and his ex both got Iva's when they split up and they were able to split the council tax they owed and each paid half into their Iva's. So maybe it depends on the company you go with.

I think the above advice of maybe getting a loan and paying this one off seems like good advice because it does appear that you will have to pay the loan either way yourself or could you agree to take on the loan fully in your name if the payments get reduced.

Collaborate · 19/09/2019 06:24

Only pay off this loan with another loan if you’re not going to get clobbered for interest on the existing loan. Many don’t give you full credit for early repayment.

861286c · 13/08/2023 01:04

I have just got the title deed on my house and seen that my ex husband who will not resolve finances with me whatsoever has took out and IVA and there is now a restriction on the property

what does this mean for me ? After a quick google it says in the 5th year (next year) he will have to release equity !

RedHelenB · 13/08/2023 15:51

861286c · 13/08/2023 01:04

I have just got the title deed on my house and seen that my ex husband who will not resolve finances with me whatsoever has took out and IVA and there is now a restriction on the property

what does this mean for me ? After a quick google it says in the 5th year (next year) he will have to release equity !

Your half is protected so don't worry too much. Difficulty would come if you wanted to sell before the 5th year.

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