Can your Partner pay your IVA?

15/03/2023
Can your Partner pay your IVA?

Your partner is not usually liable to pay your debts. However they can choose to pay your IVA on your behalf if you cannot afford to do so yourself.

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Does your Partner have to pay your IVA?

Legally speaking your partner is not responsible for paying debts in your name. This is regardless of whether you live together or are married or not.

Having said that if you are living with a partner they will be involved with your IVA. This is because when calculating what you must pay into the Arrangement their income will normally have to be included.

Creditors will usually only accept the Arrangement if the payments are based on the household disposable income. Their argument is that you have both benefited from the debt and so should both help to repay it.

Your partner may have their own debts to pay. They will only be able to continue doing this if they can afford to after contributing to their fare share of the household expenses.

Can your Partner pay your IVA if you have no income?

You may be in a position where you have little or no income of your own. In these circumstances you can still do an IVA. Your partner or any other third party can pay it for you.

It is possible for someone else to support your payments. For example a parent can step in and maintain them you if you cannot afford to do so from your own income.

As an alternative to supporting monthly payments, your partner could offer a single cash lump sum. This would enable you to do a Lump Sum IVA with no additional ongoing payments.

Struggling to get your head around all of this?  We can help. Call us (0800 011 4712) or complete the form at the bottom of the page. The advice is free and confidential.

Can your Partner pay off your IVA early?

An IVA can be settled early. Generally speaking this requires someone to offer to pay the remainder of your outstanding payments with a single cash sum.

The amount required normally has to come from your Partner or another third party. You cannot use a windfall you have received yourself. This would have to be paid into the Arrangement over and above your agreed payments.

The amount required to settle will depend on your circumstances. If they have not changed and you could carry on with the agreement it will normally have to be equivalent to the total of the remaining monthly payments outstanding.

If your circumstances have changed and you are no longer able to pay your IVA, it might be possible to settle for an amount which is less than the sum of the remaining payments.

Need more advice about your partner paying your IVA for you? Give us a call (0800 011 4712) or complete the form below. Its free and confidential.

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15 thoughts on “Can your Partner pay your IVA?”

    Mark says:
    28/04/2016 at 15:56

    Spoke with James on Live Chat – very helpful and supportive! Thanks.

    Reply
    Michelle says:
    28/11/2018 at 17:31

    Hello

    Can my husband pay off my iva ?

    Reply
      James Falla says:
      28/11/2018 at 17:53

      Hi Michelle

      Your husband or any other third party can settle your IVA early. The amount they will need to offer will normally have to be the equivalent of the amount you have left to pay. So if you pay £150/mth and have 2 years (24 month) to go they would need to offer £3600 (24 x £15).

      It might be possible to offer slightly less. However your creditors are unlikely to accept much of a reduction unless your circumstances have changed and you can no longer afford to make the payments yourself. Where this is the case and the creditors are faced with the prospect of the IVA failing and getting nothing more or accepting a lesser amount they might go for a smaller offer.

      Reply
    Nicola says:
    21/05/2020 at 12:09

    Can my partner pay off the remaining amount of my IVA, are there any implications for me if he does this ?

    Reply
      James Falla says:
      21/05/2020 at 12:21

      Hi Nicola

      Your partner can certainly pay off the remaining amount on your IVA. This is known as settling your IVA early. You simply need to agree the required amount that your partner will have to pay with your IVA company.

      The implications for you of doing this are largely positive. Your IVA will be completed and after this you will no longer have to make the monthly payments. In addition there will be no more annual reviews with your IVA company. Any increases in your income or windfalls you receive in the future will be yours to keep.

      The only thing worth bearing in in mind is that settling the Arrangement early will not in itself improve your credit rating. The record of your IVA will still remain on your file for the full 6 years.

      Reply
    Steve says:
    27/05/2020 at 12:06

    Can my parents pay off my IVA?

    Reply
      James Falla says:
      27/05/2020 at 12:50

      Hi Steve

      Any third party can offer up the funds required to settle your IVA early. This could be your parents, partner or really anyone willing to offer the required cash.

      You should ensure the person providing the cash understands that they will have to prove their identity (with a copy of their passport or driving license) and that the funds are coming from a UK bank account (normally a copy of a bank statement will suffice). This is to comply with the UK money laundering checks your IVA company will have to carry out.

      Reply
    Katrina says:
    28/09/2020 at 17:04

    My good friend has offered to pay the outstanding of my IVA, would this be accepted from my creditors?

    Reply
      James Falla says:
      28/09/2020 at 17:12

      Hi Katrina

      Yes absolutely, your friend or any other third party can offer to pay off the outstanding balance of your IVA thus settling it early. You need to speak to your IVA company and explain to them that this is what your friend wants to do. The company will confirm the amount that will have to be paid. If you agree, they will carry out all the necessary negotiations with your creditors.

      You will also need to let your friend know that to comply with UK money laundering rules, they will have to give proof of their identity (such as a copy of their passport) and confirm that the funds will be paid from a UK bank account. They will normally will need to give a copy of a bank statement from where the funds will be paid.

      Reply

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