There's no such thing as a single "joint IVA" in the strict legal sense — an IVA is always an agreement between one individual and their creditors. But couples who share debts can still tackle them together using what's known as interlocking IVAs: two individual arrangements, set up side by side, that are linked so they work as one household solution.
This approach is common where partners have borrowed jointly or where most of the debt is shared. It lets you deal with the household's finances as a whole, based on your combined income and outgoings, while each of you still has your own arrangement.
The short answer
- A true "joint IVA" doesn't exist — couples use interlocking IVAs instead.
- These are two linked individual IVAs based on your combined household budget.
- They can make sense where you have significant joint debts.
- Each partner's payment is worked out from their share of the household surplus.
- Both IVAs affect each person's credit rating and usually run for five to six years.
How interlocking IVAs work
With interlocking IVAs, an insolvency practitioner looks at your household as a single unit. They build one combined budget covering both incomes and all your shared living costs — rent or mortgage, bills, food and so on. What's left over is the household surplus, and that's divided between the two arrangements to set each partner's monthly payment.
Because they're linked, the two IVAs are usually proposed and approved together. If one partner's circumstances change, it can affect both. This joined-up approach reflects the reality that couples typically share their money and their debts. The wider eligibility principles are the same as for any IVA — our guide on whether you qualify for an IVA is a useful starting point.
Joint debts and separate debts
Where you've borrowed together — a joint loan or overdraft, for example — both of you are usually liable for the full amount, so it makes sense to deal with those debts together. Each partner can also include debts that are theirs alone. Our overview of what debts can be included in an IVA explains which debts qualify.
When does a joint approach make sense?
Interlocking IVAs tend to suit couples who:
- have significant shared or joint debts rather than mostly separate ones;
- run their finances as a household with combined income and bills;
- each have some spare income to contribute after essential costs;
- want a single, coordinated plan rather than two unconnected ones.
If most of the debt belongs to just one partner, a single IVA in that person's name may be all that's needed. And if your circumstances are very different — say one of you is self-employed — the assessment will take that into account. It's also worth remembering that an IVA is personal to each individual, so one partner can enter an arrangement while the other doesn't, if that better reflects who actually owes the debts.
The pros and cons for couples
Handled together, interlocking IVAs can bring order to a stressful situation: one household budget, coordinated payments and both partners protected from further action on included debts. But they carry the same trade-offs as any IVA — they'll affect both credit ratings, usually last five to six years, and require sustained affordable payments. Our balanced guide to the pros and cons of an IVA is well worth reading, and how IVA monthly payments are worked out shows how each contribution is set.
What if one partner's IVA fails?
Because the two arrangements are linked, a problem with one can have knock-on effects for the other. If one partner is unable to keep up their payments, it's important to raise it early — there may be ways to adjust the arrangements rather than let them fail. Each IVA is still legally separate, though, so the exact consequences depend on the specific terms and your circumstances. Your insolvency practitioner can talk you through what would happen in your case before you commit, so there are no surprises later.
Other options for couples
An IVA isn't the only way for a couple to deal with debt. Depending on your circumstances, a debt management plan or another route might suit you better, and you can get free, impartial guidance from MoneyHelper to help you weigh things up.
How IVA Advice Online can help
If you and your partner are struggling with shared debts, we'll look at your household finances together and explain whether interlocking IVAs could work for you both — or whether another solution would be a better fit. Our advice is free and confidential, so get in touch to talk it through.