Joint IVA: Can Couples Share an IVA?

Is there such a thing as a joint IVA?

In law, an IVA is an agreement between one person and their creditorsHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more →. There is no single document that covers two people. Couples with debts in both names often arrange two separate IVAs, run at the same time, sometimes with the same practitioner. The proposals are linked by the household finances, because both partners share bills and a home, but each has their own debts, income and terms. Some providers describe this as a "joint IVA", which is a marketing label rather than a distinct legal product.

Joint debts versus your own debts

The most important distinction is between debts in your name alone, debts in your partner's name alone and debts in both names.

• Your own debts: These are included in your IVA and your partner is not liable.
• Your partner's own debts: These are for your partner to deal with, and you are not responsible for them unless you guaranteed them.
• Joint debts: You are each liable for the whole amount. An IVA protects you from the creditor, but the creditor can still pursue your partner unless they are also in an arrangement. This is why couples with joint debts often arrange two IVAs.

How household income is treated

Practitioners look at the household's finances, not just yours. They work out how much each person earns, how the household billsHow to Cut Your Household Bills in the UKPractical ways to reduce energy, broadband, mobile, insurance, water and food costs in the UK, plus how to check you are getting all the help you can.Read more → are shared and what each of you can reasonably afford. This is why a couple's two IVAs are normally assessed together. If one partner has a much higher income, they may carry more of the costs. Be honest about who pays for what, because errors can lead to the arrangement failing.

Your home

If you own a home together, both of you are involved. A practitioner will look at the equity in the property, and each IVA may include terms about releasing equity near the end. Because the property is shared, one person's IVA can affect the other. See IVA for homeowners for how equity reviews work. If you rent, your landlord does not normally need to be told, but check your tenancy agreement.

What if only one of you needs an IVA?

Sometimes one partner has most of the debts and the other has none. In that case only the indebted partner needs an IVA. Your partner's income still matters because the practitioner will ask what contribution they make to joint household costs. Your partner does not become responsible for your own debts. They should be careful about taking on liability by signing any new credit agreement or guarantee.

What if the relationship ends?

Separation does not cancel an IVA, and joint debts remain joint. If you are separating, tell your practitioner so that the budget can be reassessed. Housing costs, income and payments may change. Get independent advice, because a change in circumstances could mean the arrangement needs to be varied. Do not simply stop paying.

Alternatives for couples

Depending on your situation, a joint approach might not be necessary. Options include a debt management plan, where each partner's debts are managed together or separately, a Debt Relief OrderDebt Relief Order (DRO)A Debt Relief Order is a formal solution for people with low income, low debt and few assets. Learn how DROs work, eligibility criteria and what happens to your debts.Read more → for a partner with low income and few assets, or negotiation with creditors. Our comparison of IVA, DMP, DRO and bankruptcy shows how they differ.

Getting advice together

Speak to a free adviser together, so that both of you hear the same advice. StepChangeStepChange Explained: What It Does and How It WorksWhat the debt charity StepChange offers, how its free debt advice and debt management plans work, who it suits and what to expect when you contact them.Read more →, National DebtlineNational Debtline: How It Works, When to CallWhat National Debtline is, who runs it, what it can help with, how to get free advice by phone, webchat or online tools, and what to expect.Read more → and Citizens Advice can look at the household as a whole and show how each option affects you both. Bring your joint bank statements, a list of all debts, and your tenancy or mortgage details. See free debt advice in the UK.

A worked example

Priya and Sam have a joint credit card of £8,000, Priya has a £5,000 loan in her name and Sam has a £4,000 overdraft. If only Priya enters an IVA, the joint card is covered for her, but the card company can still chase Sam for the full £8,000. If both enter IVAs, the card is dealt with in each arrangement and the practitioner works out a fair split of the household's money. Their combined contributions are based on joint income and shared bills, so they cannot each claim the same costs twice.

Questions to ask together

Ask who is liable for each debt, how each person's income and costs will be counted, what happens to the home, what happens if one partner loses their job and whether one practitioner will handle both cases. Ask what happens if the relationship ends during the term. Write down the answers so you both have the same information.