Questions about Individual Voluntary Arrangements and Insolvency.

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By epx
#149102 Hi, my housemate lost his job approx 6 months ago and has not worked since. Because he is very lazy and mislead me, I have only just found out that he has not paid rent & council tax for those 6 months, our contract on the flat runs out on 1st June and I plan to move out!

He is seriously considering an IVA as he has been advised that he will still be liable for the approx £3000 unpaid rent. However, I have read that even if he gets the IVA the creditor (ie. the landlord) can choose to go after the other joint tenant to reclaim the money ie. me.

I am very annoyed that he has allowed this situation to affect me, I have paid my share of the rent on time via standing order for the life of the tenancy! To what extent am I potentially liable for his debt?

From what research I have done I fear that I am indeed liable for the unpaid rent & council tax (but obviously not his credit card debts etc). Am I correct? If so what can I do about it fast!

How could this affect my credit record? I am currently thinking of buying a house in the next 2 years. If there anything I can do to protect myself? I do not have £3000 and so would not be able to pay the arrears.

He also said that an IVA takes 2 weeks to set up, although I read more like 60 days, is he misleading me?

Any advice greatfully received as I am getting more worried where I stand by the day! Thanks.
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By spunky_monkey
#149110 hi

i can't give you any advice regarding the rent/council tax situation, but if he has other debt that is solely in his name (eg credit cards) then you won't be liable for those.

as i am myself in an iva, i can however give you a little info regarding iva's:

1. if his only debt is approx £3k then he doesn't qualify (the fees that the iva company will reclaim for themselves for year 1 alone amount to £4k - 5k). i would suggest a minimum debt level would be £15k;
2. he will need to have a sustainable income in order to qualify;
3. 2 weeks to start an iva??? no chance! i would suggest that even if he qualified to apply for an iva (and by what you've said he doesn't) then he would be looking at approx 2 months as a minimum;

as a side note, how come you're only aware of the unpaid rent/council tax now....? surely the landlord/council would have screamed up about this long before the 6 months.....! :?

spunky
By epx
#149115 cheers for your comments. He owes about £30K+ to banks & credit cards too btw

Said he was paying, via savings & housing benefit really, unfortunately not true. I too am surprised the landlord has not called too, he owns a lot of properties though. He is sure to notice soon as the contract ends in 6 weeks...
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By spunky_monkey
#149119 from the money he owes, he would qualify to apply, but not unless he has a sustainable income. he is seriously misinformed if he thinks he will get accepted onto an iva in 2 weeks as well.

it appears to me to be a very sticky situation that you're in, no doubt someone will be along soon to give you better advice (i only have debt in my name, nothing is joint). The council especially will hound whoever owes them to the end of the earth......

hope you get sorted!

spunky