am I right in thinking the car won't be a problem

[debtsmith]

I am due for my annual review this month. My outgoings haven't changed alot although I have been given a car by my parents- value £2000- the costs of running this are about the same costs as I was paying in public transport so am I right in thinking that this won't be a problem in terms of keeping the car as the expenditure was already agreed at the initial proposal?
Also my salary has increased by about £300 a month in the last few months- will all of this now be paid into an increased iva payment each month?
Thanks

[ivoriva]

You will need to speak to your IP to see how much of your pay rise needs to go into the proposal. If its 100% you can still offset some of this with your car expenses, or any other increased expenses. IE do claim for petrol, servicing, mot, tax & insurance in full & anything else that may have risen in the last 12 months. As long as there is no decrease in dividend to creditors, your car shouldnt be a problem - and as you have a nice pay increase, a decrease in dividend is unlikely even if it does cost more than public transport - you will be able to offset one against the other.

[Adam Davies]

Hi
Just to agree with the above in that the car should not be a problem and be sure to revisit your expenditure to try and offset some of your pay rise,for example utility bills are higher this year etc etc.
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

[MelanieGiles]

Yes - I too agree that the car is not an issue, but the pay rise is, so as the other posters have mentioned do be sure to include all additional expenditure in your current statement of income and expenditure before agreeing to increased payments. If you have the 50% uplift clause as part of your IVA, your IP may also determine just to take 50% of the increase. Check the terms of your proposal to be sure.

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

[debtsmith]

Thanks for advice. I have kept some of the pay rise money back but I am worried now that there will be a huge bill of back pay requested at annual review. My IP initially told me that any chnages would be dealt with at annual review and not to worry about changes in between other than change of address.
Having said that there weren't bit changes in expenditure there has been an increase in rent as other tenant moved out. He had only stayed on the occasional weekend as mainly worked away and as a result he paid half rent but no bills. The room can't really be rented out to anyone properly as its so small. I hadn't really thought about it too much as the pay rise meant it wasn't a problem to keep up with rent and iva payments. The rent is now £450 a month and other expenditure remains much the same as before. Can anyone advise me whether there are likely to be issues at annual review?
Thanks.

[ivoriva]

The payrise might be an issue, I am 'saving' all of mine until review - just incase I need to pay it all back! I would rather be safe than sorry, in that respect.

As for the rent, if that has gone up then do put it down in any revised I&E - as you should be able to offset it against your payrise.

[MelanieGiles]

I would not have thought so - your own IP sounds as if they are commercial and practical, but at the end of the day the terms of your proposal will prevail.

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