Hi just a quikie, If your pay has increased, at the annual review does the IP take off any increase in expenditure and then put the rest of the increase towards the IVA? Or do they ever leave you with a little?
oh and also my lodger is starting a teacher training course so I am reducing her rent because she will not be working a proper job. If I explain this at the review do you think they will be okay about this? It probably will not result in needing a reduction in the payments into the IVA.
Your income and expenditure should both be taken into account when you have your annual review.
If your salary has increased and so has your expenditure then your IP will look at the net difference. If your surplus has increased then what will happen will depend on the proposals. Under the protcol proposals, you are asked to increase your payments by 50% of the increase.
Even if your arrangement was not drafted under the protocol then you should normally be able to benefit a bit from the increase in your surplus. How much will depend on your IP's policy. I like to think that it is possible for things to get a bit easier each year for my clients as well as the creditors benefiting from the pay increase.
With regards to your reducing your lodger's rent. This seems perfectly sensible to me. If your lodger will not be able to afford her current rent, then her only other option would be to find somewhere else to live. This would leave you in the position of having to find someone else you trust enough to share your home with. You do need to discuss this with your IP though as if it does mean a reduction in the payments to your IVA he or she will need to go back to the creditors. In any case your IP will want to know why the rent has been reduced.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
well I have had a payrise and told the ip and my payments went up also they went up a bit due to the lodger. I think the reduction in rent will probably cancel out the payrise so I will not need to lower my IVA payments. However I shall let them do the maths!!!
at our recent 2nd year review....it was very clear my self employed salary had increased quite a bit...but we also included receipts etc for all the increased expenditures...eg petrol and food etc and two insurance policies that had been missed from initial income/expenditure
and even then it was still clear there was a surplus...but i also included documents to show that from end of september my income would go down...so altho on paper it looked as if i had surplus ...they obviously realised it was only for 4 weeks and allowed all the increases etc and left my payment the same
i guess that there are IPs who can see the whole picture and i seem to be blessed with one who does...for which i am extremely grateful....so hope your experience is the same
IVA completed 11th Dec 2009 due to a Full and Final with the fantastic help of Michael Peoples and
Mc Cambridge Duffy
You sound like you have a very reasonable IP. I hope it will be fine. The other option is my lodger moves out and my payments have to go down to the origional payments hence creditors getting less! Plus I don't really want a stranger coming to live with me!!
it is interesting to hear everyones experiences of their IPs....we have had 2 in 2 years...never met either nor had any real correspondence other than reviews....so feel especially lucky
my own feeling is that if the IVA is running well...which ours does...then they just let time go by....
at least thats my hope
IVA completed 11th Dec 2009 due to a Full and Final with the fantastic help of Michael Peoples and
Mc Cambridge Duffy
Hopefully our IVA will be able to continue, if we get a reduction in payments. One thing I have learnt is not to be afraid of the reviews. we should look at it as a chance to make sure our I&Eis correct and payments are realistic. Our first review we were so relieved payments hadn't increased, instead of challenging the payments, as the I&E clearly showed the payments were too high.
I guess changing my outlook on the review comes from confidence, gained fron the forum. Isn't it strange how you can be so confident in areas of your life, yet so grateful and unchallenging when dealing with something o significant??
Last edited by Julie on Sat Nov 08, 2008 8:03 pm, edited 1 time in total.
Do remember that you have to agree to the increases as well - and if you genuinely feel that you cannot afford to pay more then dig in. I cannot see any IP going to the effort of taking a client to Court on this issue, and District Judges are generally on the isde of debtors if you put a good case forward.
But Melanie it is a balancing act. Most practitioners are fair and do have the ultimate sanction of claiming that the debtor is NOT cooperating with his/her Supervisor which could lead to failing the arrangement.
Only stick to your guns if you really believe that your IP is wrong and is not fair.
Last edited by David Mond on Sun Nov 09, 2008 1:04 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
