A few questions

[phill]

I am struggling along with my iva, however in a couple of months i will be getting a substantial pay rise, firstly do i have to tell my ip about this or do i just wait for my annual review?
Secondaly i know my payments will go up and that doesn't bother me however i need to re calculate my living expenses as current ones are not practical and i'm struggling to manage on them will this be allowed? e.g if my pay increase is 500 per month after tax will i beable to increase my repayments by say 300 and have the other 200 as expenses?
Lastly my expenses are going to increase with my new job anyway but ideally i need to buy a car what is the best way about going about this?
Thanks

[aguise]

Hi Phil
What does your proposal say about payrises does it say 50% or all. I would tell the Ip beforehand as if left till review you may have to pay a substantial amount back. Your Ip should give you a new income and expenditure which can offset some of the increased costs.

Ang

[phill]

Hi Ang,
From what i have read in my paperwork it doesn't say anything about payrises just that they will review annually.It does however say that they want 50% of any over time money

[Adam Davies]

Hi Phil
Well done on the payrise.
Inform your IP straight away otherwise you will have a large bill at your review.
A the same time ask your IP for a fresh income and expenditure form and let them know that your expenses have increased because of your promotion.
Then fill out a realistic and honest expenditure sheet as any surplus will have to go into your IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[aguise]

Mine says 50% ofany increase in basic income, a payrise would fit into that, I would recheck your proposal and see if there is anything else, but as said I would tell the IP sooner than later. I earn overtime and pay it each month to avoid a bigger bill at review. Some Ip's will allow car finance as I have read on here but getting the finance and affording it may be difficult. Others will be along to advise as well that will know more about that.

Ang

[Adam Davies]

Hi
Yes good point from Ang,but really all IVAs should have the same standard clauses and I would love to see all being the same as Ang,s in that in a pay rise 50% of net income[after related expenses] goes to the IVA.Unfortunately as this forum has shown they do not.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[phill]

Thanks for the advice everyone i suppose i just need to chat to my ip and see what they say!
Just wondering if anybody has had to increase their living expenses and what the responses from the creditors has been i.e food, i eat alot (not fat either)and the amount i have for food in my current iva is just not enough!

[MelanieGiles]

I do not necessarily agree with that point, as sometimes expenditure can increase at a rate more than 50% of the payrise. With my own clients, I generally do not seek 50% of the increase if this relates to a payrise, but prefer to look at the overall position at the end of each year. I feel that this is a much fairer way of looking at things, this is always explained to creditors in my annual reports without issue.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi Melanie
Thats why I said 50% of net income AFTER related expenses,so if you get a payrise but all the extra is taken by petrol costs then there would be nil extra to pay.
In Ang,s case she has to pay 50 percent of a payrise but is this regardlss of any extra costs ?

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[phill]

Basically i need to know what is an acceptable amount for food? As these last months i have closly looked at how much i spend on food and i reckon i need at least £250 a month just to survive not eating absolute cheap rubbish but not expensive stuff too!

[aguise]

Hi Andy I dont know I have just sent my six monthly review and did say on the phone that I had had a payrise 50% would be £7 a week but also said my rent had gone up by £7 a month and said I thought I might owe a bit but my manager said she was not going to change it as it was the equivelent of about £3.50 so I gort the impression she will offset the rent rise against the 50% they would take, in neffect she will not take any of the rise.
Hope you understand what I am saying cause I dont[:D]

Ang

[aguise]

Phil how much do they allow at the moment and dfoes that include oall your cleaning stuff toiletries etc, have you also included prescriptions and dental the extra types of things that can upset a tightexpenditure.

Ang

[MelanieGiles]

Hi philltomo

An acceptable amount for food for you to budget on is that which you actually spend. Keep a note of your shopping bills over the next few weeks, and work out what is realistic for your own circumstances. Obviously creditors will not expect you to be eating caviar and quaffing champagne every day!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[phill]

Ang off the top of my head £120 food, 50 clothes and toiletries, 25 month dental etc i feel it needs to be more like 250 food, 50 clothes and toiletries, 50 dental

[phill]

Melanie, the only problem if i do spend what i should on food i will take the money from another area of my budget so i'm unable to do that untill i get my pay rise!