Annual review concerns

[hope]

I am new to this forum and by reading the posts I am becoming EXTREMELY worried as I am in the process of putting together my documents for my first annual review.

My story. Due to illness I was out of work for about 4 years and when I finally was able to return to work I took out an IVA. During this period I changed jobs and now have a take home income which is about 700 more than when my IVA was approved.

I used this addtional money to pay off debts which were not inclued in my IVA as they were loans given to me by friends and family, I have also moved house.

Having read of people being told to take their children out of school and to ask for permission to take out insurance, I am rather concerned as to what I will be asked to repay.

My questions are:
Can they ask me to repay this additional money.
Will they ask me to move house - my rent is expensive.
I now have a pension with my current company will the require that I stop this pension.

I am getting that worried feeling I had before I had an IVA - this is not the way I want to feel again.

[debbiw]

Hi Hope and welcome to the forum. Do you mean £700 per month more

[rayb]

I would have a look at your chairmans report and your Terms and Conditions to see what they say. Obviously at the end of the day the idea is to try and pay as much back to your creditors as possible and If I am reading your post correctly you seem to have had a surplus of £700.00 each month that could of been offered to creditors?

[AlanO]

Hi Hope,

The surplus over the agreed income will usually be liable to 50% payment. Typically this will be demanded in full but if not afforable will be spread over a period.

If the payment is spread over a period then there will be a double whammy during this time of the catch up plus an increase monthly contribution based on the new surplus.

To offset part of the increase I suggest you closely look at your expenditure and budget for any likely increases.

All the best Alan

www.debtdr.co.uk

[hope]

Yes it has been 700 per month more but only for about 5 months

[maxdebt]

I am not an expert just a person in debt but as far as I am aware the 50% payment does not apply to every IVA agreement only if it was included in the proposal or added as a modification by creditors. However that is a large amount of money over your agreed monthly disposable income and if that was to be sustained then your IP will certainly be increasing your monthly amount at your review

[AlanO]

The 50% payment is pretty standard - although in some cases there are exceptions, as Masdebt says check the terms on your IVA. Fingers crossed but I don't hold out much hope.

As mentioned before ensure there are movements on both sides to reflect your current expenditure

All the best Alan

www.debtdr.co.uk

[Adam Davies]

Hi
If it is an increase in basic pay then all of it could be included in your IVA payments.You need to read the terms and conditions of your chairmans report as some do state 50% of monies over and above the proposed income,however most just require a new income and expenditure form to be filled out and whatever the disposible income is will be required in full for the IVA.
How much more is your rent now compared to your proposal ?
You may be ok because most IPs only require increased payments,due to payrise,after the first annual review
Regards

[hope]

Thanks for your replies everyone. I am currently in the process of getting ALL the documentation together and re-reading the T&C.

Will let you know what comes out of this.

Again Thanks.