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Will an IVA Affect my Partner? A Guide

“Will an IVA affect my partner?” – that is a question we are often asked.

Individual Voluntary Arrangements (IVAs) are a formal debt solution and are a fantastic method to handle your debts, but how will an IVA affect your partner?

Before you apply for an IVA, you should think about all of the angles and consequences that an IVA may have on your life.

In this article, I’ll go through what types of impacts an IVA might have on your spouse and issues you should be conscious of when it comes to your relationship with your partner during an IVA.

Will an IVA affect my partner?

An IVA may have a negative impact on your spouse. There are several methods through which an IVA might affect your partner, but how it will affect them and the severity of these effects are completely dependent on your circumstances.

So, let’s have a look at it:

What is the typical duration of an IVA?

An IVA generally lasts 5 years. If you miss payments or choose to have them lowered, your IVA may be prolonged beyond the usual 5 years (perhaps 6 years). You can also complete your IVA prematurely if you figure out how to repay your debt in full while it is still active.

Is it necessary for my partner to make contributions toward my IVA?

No. An IVA is a personal arrangement that deals with an individual. Even if you’re married or living together, your spouse or partner isn’t required to make contributions to your IVA.

You’ll be solely responsible for making your monthly payment to your IVA. That being said, there are some things to consider if your spouse is residing in the same home as you and contributing financially.

Your creditors, as well as your Insolvency Practitioner, would assume you’d be responsible for making payments on necessary home expenditures to provide additional funds for the IVA.

Is it possible for me to Contribute to My Household Expenses or Would My Partner Have To?

You may still contribute towards your family’s necessary household bills.

Your IP will sit down with you and make a comprehensive plan for your IVA after examining your debts, income, partner’s income, and household expenses.

Your IP will take both you and your spouse’s contributions to essential living expenses into account and create an IVA payment plan.

Your spouse won’t have to worry about all the essential living expenses of the family on their own because your payments for them are recorded.

Will an IVA Affect Your Credit File? Will It Have Any Influence On My Partner’s Credit History?

If you have an Individual Voluntary Agreement (IVA) or any other debt solution, it will have a significant effect on your credit history and is marked on your file by credit reference agencies. Your IVA will be recorded on your credit report for the next six years. This is true even if your IVA ends in five years. As a result, for the next six years, you will be unable to obtain credit and other aspects of your life may suffer as well. Your ability to apply for credit would be greatly harmed by including an IVA in your credit report.

Not just will this limit your access to any sort of financing, but it also has an impact on other parts of your life.

For example, you might not be able to find a job because you can’t find a place to rent.

The influence it may have on your partner’s credit history depends if you have a financial link due to a joint loan for example.

If you have joint financial accounts, your IVA will influence your spouse’s credit record as well. 

To prevent this, your spouse might seek a Notice of Disassociation. This would sever any financial connection between you two and protect your partner from the detrimental effects that an IVA would have on them.

Please keep in mind that a Notice of Disassociation only works if you don’t have any funds that are still active.

For example, if your partner has an active joint bank account with you, joint debts that haven’t been repaid yet, or a joint mortgage with you (IVA with a mortgage is another thing to consider if it applies to you), they won’t be able to apply for a Notice of Disassociation.

Is it possible for my partner and me to have a joint IVA?

Joint IVAs are complete fiction; therefore, no. Only individuals can apply for IVAs since that name implies. That being said, if you and your partner have joint debt, you may opt for either IVA individually and then link them together. Interlocking IVAs are ones in which both participants make one common payment towards both of their IVAs and debts are pooled.

Both of you would have to submit applications separately, but both of you would make a proposal that claims your IVAs are linked. Both you and your spouse may get debt advice from your IPs for more information on the intricate procedure. They’ll tell you whether interlinking IVAs would be the best approach to handle your obligations, as well as how you should go about it if they decide they are.

It’s possible that you and your spouse’s combined earnings and monthly expenses of your household would be taken into account. It’s also worth noting that any discussions you have with your IP about your debt, IVA, or other topics will be revealed to your partner as well since they’ll have access to yours.

Before you opt for it, talk it over with your spouse. Remember that there are numerous other debt solutions in the United Kingdom.

We strongly advise that you speak with a debt advisor before deciding to pursue interlocking IVAs because while they are feasible, they may be perplexing and tough to execute.

For debt advice, you can leave an enquiry on our website and one of our experienced debt advisors will go through your situation and offer solutions that are available to you.

Our specialists will evaluate your income, expenses, and debt in order to provide you with a precise suggestion about which debt solution is best for you.

Not only that but we also guide you on how to apply for an IVA if it is the solution you wish to proceed with. We also draft the documentation in-house with our licensed insolvency practitioner.

Is it possible to borrow money on an Individual Voluntary Arrangement?

You can’t get credit of more than £500 while your IVA is in place, according to the regulations. You’ll have to ask your IP for permission if you want to obtain credit worth more than £500. Even if you manage to persuade your IP, lenders aren’t likely to be receptive to your application. You’ll have trouble finding specialised lenders who will give credit to those in IVAs, and even if you do, you could be limited to loans with high-interest rates.

Is My Partner’s Pay a Factor in My IVA Payments?

Not on the whole. Your IP will only take your income into account when they calculate the payments you’ll make toward your debt. If your spouse’s income is significantly greater or lower than yours, though, this may have an impact on the amount you pay towards your IVA each month.

Your IP and your creditors may expect you to make bigger payments towards essential living expenses owing to your partner’s high income, for example. This would allow you to make greater monthly contributions toward your obligations. If your partner has a considerably lower income than you (or no income at all), this will also be taken into account.

As a result of this, they may set the limit for monthly payments you have to make towards your debts lower. They will do so as a result of your IP knowing that you are the only individual bringing money into the home and that you must help both yourself and your spouse. As a result of this, they may set the bar lower for required payments every month. Please be advised that in any event, regardless of how much you can afford to pay toward your debt each month, you will never be required to pay more than what you can afford. Your Insolvency Practitioner will guarantee it.

If any of this affects you it’s always better to seek professional advice.

Get in touch for free and impartial advice on available debt solutions by leaving an enquiry and one of our team will call you back and go through things to find the best debt solution for you.

You can also call us on freephone 0800 169 1536.

If you prefer to speak to one of our team through WhatsApp, our number is 07762 145 581 or speak to someone through our Live Chat service.

Useful Links:

Our Page on IVAs – HERE
The Governments webpage on IVAs – HERE

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Customers can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from the Money Advice Service visit www.moneyadviceservice.org.uk. MAS is part of the Money & Pensions Service. We are not affiliated with MAS in any way.

Become Debt Free is a trading style of Re10 (Finance) Limited Registered Number 04651137.  Data Protection Act Registration Number – Z8613095

Become Debt Free specialise in providing and administering Individual Voluntary Arrangement (“IVA”) solutions to individuals based in England, Wales and Northern Ireland.  We do not administer Debt Management Plans, Debt Relief Orders, or any other debt solutions.  We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meets the criteria for an IVA, therefore, all advice is given in reasonable contemplation of an insolvency appointment.

* To qualify for debt write off in an IVA with us, you must have a minimum of £7,000 of qualifying unsecured debt owed to two or more creditors.  The amount of debt write off is based on your own personal circumstances – typically this could be up to 85% of what you owe; and this has been achieved by over 10% of our customers who have successfully completed their IVA’s in the last 12 months.  The amount of debt write off differs for each customer and is dependent upon their individual financial circumstances and subject to the approval of their creditors.

Andrew Bowers is authorised in the UK to act as Insolvency Practitioner by the Insolvency Practitioners Association.


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