can any one tell me ...

[LEW]

hi all,
novice here, this is my first time on the forum and would love some advice
can any one tell me if i entered into an arrangement and agreed to pay 30p in the pound and i now earn more money to i have to pay more than the 30p, and can my ip make me increase my monthly payments and if so does this mean my iva is paid of early?

thanks

lew

[ivoriva]

The proposal normally sets out a minimum return to creditors. However, any additional monies received will normally be paid into the arrangement, at least to some degree - exactly how much of what is paid depends on individual proposals. So in answer to your question, if you earn more you are likely to have to increase monthly payments as a result. It would not mean ending the IVA early (unless it is a large amount to repay the debt in full) - it would just mean a better return for creditors.

In terms of annual inflationary increases, it is sometimes possible to argue a higher level of expenditure in your yearly review, so in affect your payments will remain the same.

[aguise]

As ivor says it depends what is in the proposal,some will say all wage increases, mine says 50%. It wont pay it off any earlier it will just give a higher return to the creditors. The same applys to overtime but this is usually 50% we pay ours monthly so there is no bill at review, but you still get the advantage of the other half and as ivor says increases in rent etc can be offset against the extra income.

Ang

[Oliver]

You will always have to pay your creditors to the best of your ability. So if you do come into extra monies and your agreement stipulates that these need to be paid into your IVA your dividend will increase to your creditors but the term of your IVA will not decrease.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[LEW]

thanks for getting back to me.

i understand what you are saying but it dosnt state that in my arrangement. all it says that i must pay at least 25p. maybe im just not reading it properly [:(]

[Lula]

i think that clause means your payments must not fall below 25p in the £ ... any extra income you must tell your IP to find out how much you need to increase your contributions!
Better to have that conversation early on rather than wait and get a big bill ...Your IP will know as they see all your pay slips etc..at your review!

[LEW]

HI LULA, THANKS FOR GETTING BACK TO ME, WHAT I MENT SAY WAS THAT THEY ARE ASKING ME TO PAY NEARLY A FURTHER 25P IN THE POUND THEY KEEP CHANGING THE FIGURE IS THIS NORMAL.

[Skippy]

Hi Lew, when you say that you are being asked to pay different amounts is this because you have had some overtime or a bonus from work?

My IVA stated that I would pay £459 per month (27p in the pound) but if I had a bonus or any overtime I would have to pay 50% of that into the IVA. My terms also stated that my payments could never fall below 27p in the pound.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[LEW]

HI SKIPPY 13,

I CHANGED JOBS I DID ASK MY IP WOULD IT EFECT MY IVA AND I WAS TOLD NO. EVERTHING WAS FINE UNTIL I QUIERED THEY THEN TOLD ME TO SETTLE EARLY IF WASNT HAPPY, AND THEY GAVE ME A SETTLEMENT FIGURE, WHICH WAS A LOT HIGHER THAN WHAT I SHOULD HAVE PAID IN OVER 5 YEARS PLUS EXTRA MONEY FOR THEM DUE TO THE EXTRA WORK. WHEN I QUEIREE THIS MY IP WOULDNT RETURN ANY OF MY PHONE CALLS OR LETTERS ITS BEEN 7 MONTHS NOW OF LATELY THE ONLY RESPONE I HAVE RECEIVED IS THEY WANT A FURTHER 500 PER MONTH OR AN EXTRA 25,000 TO SETTLE ON TOP OF WHAT THEY QUOTED ME 7 MONTHS AGO. I JUST DONT UNDERSTAND HOW THEY CAN KEEP CHANGING THIS.