annual review/bonuspayments

[floridaholiday]

Hi all, recently sent off details for our annual review, have not heard anthing back yet been about three weeks. I feel a bit nervous about this. Back in april i contacted my iva company about bonus payments that my hubby had received. He has had three this year totalling £3100.00 plus £400.00 for a tax rebate payment. In April I was told that we would have to increase our payments by £19.00 per month for the rest of the term of the Iva as we did not send in the 50%. We were told that they would sort out the payments their end and adjust our direct debit, which they never did. I did point out at the time that we had a lot of extra expense and the person I spoke to said it did not matter we still had to pay the money. I have sent in a list of additonal expenses iccurred over the last year which was mainly due to moving (rental deposits, final bills, etc). All the expenses has swallowed up the bonus payments. I no the £3,500.00 is a lot of money but it has been use for normal living emergencies etc. Four weeks ago the head gasket went on my car costing £600.00 I phoned my iva company to ask advice as we did not have the money she said we could have a two month payment break which would total £532.00 to pay for the car repair, this was before I sent in the annual review details. I am starting to worry that they are going to say we have spent all this money, and they want it although we haven't we have used it for things that were necessay. Any advice from an expert please !

[kallis3]

Hi floridaholiday, and welcome (how I wish I was in Florida right now!)

I am not sure how your company will deal with this because although you have earned a lot of extra money, you do seem to have had a lot of extra expense as well.

I'll bump this back up so one of the technical experts can advise you.

[MelanieGiles]

If you incur additional expenditure during the year, you will firstly be expected to fund that out of your 50% share of any additional earnings, and then if that has been absorbed from the creditors' share. You will also need to be able to show receipts for the exceptional items.

Generally, the best thing to do as soon as bonus payments are received is to calculate what is needed to be paid into the IVA and send that straight away. Leaving things to the end of the year, can often mean that money belonging to the creditors is spent, potentially leaving problems to be dealt with at annual review stage.