Joint debts require careful handling in IVAs. Both parties remain legally liable, but only one person's IVA covers their share. This guide explains options for couples and joint account holders.
Check EligibilityBoth parties on a joint debt remain fully liable for 100% of the balance, even if one enters an IVA.
Couples can enter linked joint IVAs to protect both partners from joint debt creditors.
Non-IVA partners may need their own debt solution or payment arrangement for joint debts.
Joint debts create complex situations in IVAs because of "joint and several liability"—a legal principle meaning both parties are individually responsible for 100% of the debt, not just their share.
When you sign a credit agreement jointly with another person, you both become equally liable for the entire debt. This means:
Example:
Sarah and Mark have a £10,000 joint loan. Sarah enters an IVA.
Common joint debts that affect IVAs include:
Note: Additional cardholders on credit cards are NOT jointly liable—only the main account holder is responsible.
If you have joint debts, you have several options:
1. Joint IVA (Both Partners Enter Together)
The cleanest solution is often a joint IVA where both parties enter their own IVAs simultaneously with linked proposals. Benefits include:
However, both partners must meet IVA eligibility criteria independently—minimum £6,000 debt, affordable payments, stable income. If one partner doesn't qualify, a joint IVA isn't possible.
2. Single IVA (Only One Person Enters)
If only one partner has debt problems, they can enter an IVA alone. Their proposal includes their share of joint debts. However, the non-IVA partner remains fully liable and creditors will pursue them.
The non-IVA partner may need to:
3. Partner Takes Over Payments
If the non-IVA partner has good income and credit, they might:
Creditors aren't obliged to release the IVA partner from joint debts, but may agree if the non-IVA partner demonstrates ability to pay.
4. Both Enter Different Debt Solutions
Sometimes one partner gets an IVA while the other enters a different solution:
This protects both parties, though solutions work independently and may complete at different times.
Your IVA affects your partner's credit rating only if you have financial links:
If you have joint accounts but your partner doesn't have debt problems, consider closing joint accounts and maintaining separate finances to minimize credit impact.
To minimize impact on your partner:
Joint mortgages are secured debts and work differently from unsecured joint debts:
If you've separated from someone with whom you have joint debts:
Your insolvency practitioner will:
When one joint debtor enters an IVA:
Your IVA only covers your 50% share of joint debts. The other person remains fully liable for the entire debt amount under 'joint and several liability' rules. Creditors can pursue them for 100% of the balance, though your IVA contributions pay toward your share.
Yes, couples can enter joint IVAs with linked proposals. This protects both partners from joint debt liability. You'll each have your own IVA but they're coordinated to work together. Both must meet IVA eligibility criteria independently.
Your IVA doesn't appear on your partner's credit file unless you have joint debts or joint accounts. Joint debts will show on both files. If you have no financial links, your IVA has no impact on their credit score or ability to borrow.
The best protection is for your partner to also enter a debt solution (IVA, DMP, or DRO) covering their liability. Alternatively, they can negotiate with creditors to take over full payments, or you can both enter joint IVA protecting both parties.
One partner can get an IVA while the other doesn't. However, joint debts remain problematic—creditors can still pursue the non-IVA partner. The non-IVA partner may need to take over payments on joint debts or consider their own debt solution.
Not necessarily. If you have a joint bank account but separate debts, only the person with debt problems needs an IVA. However, joint accounts are usually closed when one person enters an IVA, and you'll need separate accounts going forward.
If you had joint debts together, their IVA only covers their share. You remain liable for the full amount. Contact creditors to explain the situation and arrange payment plans. Consider whether you need your own debt solution for the remaining liability.
Joint mortgages are secured debts and typically continue to be paid as normal during an IVA. Both parties remain responsible for mortgage payments. If you sell the property during the IVA, equity is divided according to ownership shares.
Joint debts are usually split 50/50 unless ownership was different. Your IVA proposal includes your 50% share of each joint debt. The other party remains responsible for their 50%, but creditors can pursue them for 100% under joint liability rules.
No, you can only include debts in your own name or your share of joint debts. Your partner's sole debts are their responsibility. If they have debt problems too, they need their own IVA or alternative debt solution.
Get expert advice on handling joint debts in IVAs. Our specialists can explain your options and whether a joint or single IVA is right for you.
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