Ive been on an IVA since the start of the year. The sum agreed was 16k ish. I can rememer exactly how muc hi owed before, but it was in the mid 20s i seem to recall.
Anyway, I have recently handed in my notice in my current job, and wiil be starting a new job IT contracting. I will be taking home around an extra 1K/month. When my annual review comes in December, what can I expect. Obviously my payments will increase..I was of the misapprehension that that 16k was a fixed fee, I guess it isnt? Is my payrise goning to just be added to my debt?
I am starting to think it was a mistake to leave my current job, as I will be no better off in the new job.
Hi
You payments are based on your disposible income and your payments will increase quite substantially.
It may be that you will pay your total original debt and any IP fees before the five years are up. Your IVA will then end early so it may be a good move.
You can always stop your IVA and go back to dealing with your creditors directly, you may be able to agree amounts with each of them or drop into a Debt management plan, you will have more control of how much you pay compared to the IVA
Regards
Part of the reason I took on the IVA was because my finances were unmanageable (by me). Lots of differnet creditors, and I found myself unable to keep ontop of it all. It was a nightmare.
The great thing about the IVA was that it meant one monthly payment, and I was free to think about other things other than trying to manage all my debts, I felt like I was sinking before the IVA! I dont want to go back to dealing with individual creditors again!
Now it feels like the IVA was kinda pointless financially.
Depending on the modifications and conditions of your IVA you may be able to keep 50% of the pay rise which would make it worthwhile to take the job. Your creditors and your IP cannot expect you to have no incentive to better yourself especially when they will also benefit. However, if you are now contracting in IT either via a limited company or on a self employed basis make sure that all expenses and tax liabilities are taken into account when you do your new I&E.
I am not 100% sure, but are you not supposed to provide details of any increases to your monthly salary as they happen so that you make the neccessary contribution towards clearing your debt?
I am only raising this point as; if you dont declare any "over and above" payments from your agreed IVA amount you might be liable to owing a large sum of cash at the end of year review!
I am considering a job change with increases to my monthly pay and I am assuming I will have to pay any extras after the 50/50 split and changes to conditions have been taken into consideration.
I would appreciate an update in due course on your situation.
50% rule usually applies to bonus and overtime. Pay increases get
picked up at the annual review as I understand it.
I checked this out and as I am about to start a new role with a pay increase. I understand this could vary on each iva so definitely worth discussing with you IP.
Last edited by Adam16 on Sat Jun 20, 2009 6:19 pm, edited 1 time in total.
Hubby has had a payrise on his pension, Payplan are aware of it and haven't changed our payments at all.
Usually you find that expenditure has gone up as well, but if you are taking home that much extra then some of it will have to be paid across at some time.
As Andy says, you may be able to pay back all your debts in less than five years.
You will always owe the full debt until your IVA has been completed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Adam16.
I agree entirely with the 50 / 50 split with OT & bonus' but if it is a total job change with a "good" increase to your basic salary, would that not have to be taken into account if you have say 6 months from now to the annual review?
The best thing to do is speak to your IP and tell them about your new job.
If they are going to request an increase in payments then it would be better to start now rather than have a bill after your review.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
