The law that applies to joint debt is called ‘joint and several liability’. This means that both people named on the debt are jointly liable for the full amount; i.e. not half the balance each. In most cases we deal with where there are joint debts, both people will move forward with an inter-locking IVA. This keeps things very simple as both usually offer the same repayment terms to the creditor.
In some cases, one of the people named jointly on the debt does not want to instruct us to act on their behalf or propose an IVA. It could be that this is the only debt they have, and they are otherwise in a strong financial position. This is more complicated to deal with but still possible through an IVA.
We would still need to confirm the creditor’s details in our clients IVA proposal, should the IVA be accepted, our client would not need to make further payments towards the joint debt, other than through their IVA. The person that is jointly liable for the debt (but not in an IVA) must continue to honour the full financial commitment to the creditor. It is likely, given the circumstances, that the creditor involved will work with the remaining debtor to arrange realistic repayment terms so long as they are contacted as soon as possible after the issue arises.