New partner IVA

[Shedload]

Hi, I have been seen a new guy for the last year. We are both divorced.

we don’t live together and have no plans to do so, we both of our own houses both with mortgages. I recently found out that he is in an IVA due to debt problems that he fell into. He has explained that he chose this route as it meant he could sort out the debts but also keep his house safe. From what I can see he’s fairly sensible with his money now and I’ve never seen any evidence of him being reckless or overspending. He has been very honest and open with me, telling me that he was really stupid with money before and that he holds himself fully responsible for running up a high amount of debt.

He has two years left of the IVI at which points he should be debt free. We have no plans to merge finances for to move in together. I still have teenage children at home and neither of us want to take that step just yet

as someone who is always been fairly cautious with money it has raised some alone bills that he is in this situation. I’ve spoken to my mum about it who thinks I’m being ridiculous and that I would be crazy to jeopardise a happy relationship for money issues, especially as he is dealing with them and is taking responsibility. WWYD?

As long as you live apart and keep your finances separate it's of no consequence.

Red light time is if he starts asking you for money.

It sounds like he's learned his lesson, and being in an IVA is a crash course in learning to budget and being financially responsible because you're forced to live without credit for the period of the IVA.

You see him being responsible and not reckless and presumably you're still managing a relative normal life together eg can go places without you having to pay. ANd then when the IVA is over his disposable income will increase as he'll be debt free.

It's not something I'd be concerned about.

I’m not sure you can be in an IVA and own a property - it would have been sold to repay creditors?

IVA allows you to retain your home:

https://www.stepchange.org/debt-info/iva-and-mortgage.aspx

I think that IVA’s are available to home owners

That’s the point of an IVA - you ARE repaying your creditors albeit slowly and often at a reduced rate, so you get keep your house. It’s not as severe as bankruptcy?

He probably got to keep house if there wasn’t a lot of equity in it or needed the house for children to stay, or has sufficient salary to fund an IVA as well as mortgage. I think you are right to be cautious, but not everyone is good with money and find themselves in debt, but at least he’s on track to be IVA free in 2 years. I worked for over 25 years for an Insolvency Practitioner and I would say that the majority of clients it was a lesson well learnt.

Thank you. Apparently his debt was 40k at its worst which blows my mind. Did you often see amounts like that in your role?

That.

Exactly.

@Shedload You would be surprised at the amounts people are in debt, but for various reasons, some enter an IVA themselves, but others do because it’s either that or be taken to Court.