annual review

[charley]

im due my annual review and also had a pay rise 6mths ago which i did not tell them about.i know im going to end up having to pay a nasty amount thats my own stupid fault. do you think theres any chance they would let me back back over a few months or is it all due up front? the last thing i want is to have to go bankrupt.

[aguise]

Hi Charley
It is much easier to tell them at the time of the rise that way you dont have to worry as they can alter anything then. The best thing to do is speak to your ac manager and ask if you can add an amount each month to cover the shortfall. Dont worry it is not in their interest to fail the iva, but as suggested if you have a rise or overtime it is better to declare it at the time. I earn overtime each month and ring every month to pay the extra to avoid the problem at review.
All the best charley let us know how you get on.

Ang

[Adam Davies]

Hi Charley
I,m surprised that you have not had to forward your wage slips on a quarterly basis,then it would have been picked up.
Make sure that you fill in a fresh income and exenditure form and allow for increases in utility bills and anything else that has increased.This will help reduce the amount that you have to pay from now on but will not help you having to repay the extra over the last six months.
As Aguise says its in no ones favour to fail your IVA so I,m sure that you will be able to arrane something with your IP.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi Charley

Practically I do not think that you will have a problem with your IP. My personal view (as an IP in practice) is that a once per year review of your financial circumstances is sufficient, and if you have benefitted from some extra money along the last six months I am sure that is has been wisely spent and not frittered away.

Depnding upon your current income and expenditure position, your IP may wish to see an increase in your monthly payments - but as Andy says do ensure that you are providing adequately for all of your household and personal expenditure.

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

[Andy2]

Are you a homeowner ? There has been the interest rate rises plus increases in utilities that can easily eat into a pay rise. However it will all depend upon just how big a rise this is that you have got - I mean are we talking tens or hundreds of pounds per month ?

[Adam Davies]

Hi Melanie
Are you saying that you do not review wage slips on a quarterly basis ?
Are you also saying that you do not think that Charley will have to pay the extra money that has been earned over the last six months ?
By the way its good to have you back
Regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi Andy - yes great to be back in the fold and look forward to catching up with you at Wednesday's debate.

I only review wageslips on a quarterly basis if creditors have modified the proposal by including a 50% uplift provision - and then my calculations are taken strictly from the wording of the modification, which generally relate to overtime, commissions and bonuses - no pay rises. I then ascertain whether my client has incurred any additional, unforseen expenditure during that period, which firstly must be taken from his/her 50% share but if higher can be absorbed by the creditors portion. This usually has to be substantiated by receipts.

I take a more relaxed attitude if not required to review wageslips, and believe that a once per year review is sufficient. The original poster did not confirm whether he was subject to the 50% provisions, but as his Supervisor does not appear to have requested wage-slips I am assuming he is not. If Charley's own Supervisor shares my view then I do not believe he will need to pay over any additional money.

If I were the Supervisor, I would be reviewing forward for the forthcoming year and reassessing the level of payment for the next twelve months, rather than trying to recoup money which has probably already been spent on worthy items.

As practitioners we do have to balance the needs of the creditors, against the experience of the debtor who is already working to a tight budget. My personal view is that if clients have a pay rise during a year, then good luck to them as there has to be some incentive to continue to make those monthly contributions. This does also help to preserve the client/practitioner relationship which is so important to maintain to ensure that the IVA eventually runs its course and provides the return that creditors originally voted to accept.

It is interesting to note that the proposed SIVA procedure does not allow for annual reviews or any further adjustment of contributions once the SIVA has been accepted! We will have to see what the main banks and lending institutions make of that.

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

[charley]

thanks for all the advise. i dont have to sent wage slips every quater just once a year.
will just have to wait and see waht happens