I kind of have some sympathy with Creditfix and it may be that they have badly explained the concept.
The IVA is a balance between what the creditors are owed and what is needed for you to live your life.
The IP is in a situation where they have to ensure that both needs are met.
If you are in a situation where you are building up a significant savings balance "ready for the future" then potentially allowances are too generous and you have another asset that could be realised (or the interest could be).
If you can justify why the money needs to be saved e.g. oil bill (thank god I have a budget account), tax man etc. then that should be accepted.
What I don't have sympathy for is staff being bullish about this.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
life...I understand where you are coming from, but I think the worry/problem is that when we were with PJG we received allowances for things like Hair/Dentist/Glasses/Car/School Costs to name a few, but these are not necessarily used every single month. No on the assumption that your car is fine, this will keep accruing in the bank account and will look quite a bit, but then comes the day when all of a sudden a set of brakes are needed, tyre to replace...it doesn't mean we have been given too much, it just means its not yet spent.
Plus of course, anyone doing overtime and is allowed their 50% split, they aren't going to go spend this in the same month. For the most part its put away for that rainy day again, but it may be a long while in coming. It was entitled to, just not spent.
In our case, we saved every penny we could during my husband redundancy, reduced on a lot of things, and that was after the review was done to reflect benefits etc, we are now looking at spending a bit because he is now back in work, but because of our spending problems in the past we won't be frittering this away...it'll stay in the bank.
I was as well and it's still a concern but I have seen the I&E form and it does allow for these.
We have also downloaded the latest Stepchange guidance to make sure that the allowances are reflective once we are contacted about an assessment.
After 4 years of this I wont accept anyone changing the rules on me and they will need to be able to put in writing why certain decisions might have been made.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
There are several account types with different features/costs (including one with no monthly fee which I have), there are no credit checks and they don't report to CRA's, you get a Visa debit card and can do most things you could with a normal bank account (except setting up direct debits or paying in cheques).
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur."
If this became the norm then no one in an IVA would do overtime. First of all the IP would take half under the terms of the IVA and then grab the rest as a post IVA asset. This is a clear breach of the letter and spirit of Protocol and would be to the detriment of creditors in the long run.
Many years ago clients had to pay in up to 75% of overtime and the amount we collected was tiny. Why bother killing yourself for nothing was reasonable thinking but the current system struck a happy balance.
I think CF would have a very difficult job telling anyone who saved their share of overtime, bonus and commission to hand it over. It flies in the face of the proposal and the agreement reached between debtor and creditor.
Michael, but if CF played hard ball and threatened you with failure of your IVA, what could you do. I for one could not afford any legal fees as I am sure you will appreciate financially anyone who is in an IVA is vunerable to bully and scare tactics which are being used by CF.
I appreciate what your saying Michael, but Creditfix do not seem to be being reasonable over this - and the potential secured loan thing - and if they're saying you will do X,Y,Z, or we will fail you, that's a very stressful position to be in...if prepaid cards is a way to keep our allowances from being taken its definately something to consider.
I doubt if it would come to this but in such an instance you would be able to go to the regulators. You could also speka to the CAB who could possibly find free legal help or your could represent yourself in court. Way down the line anyway and hopefully nothing like that would ever happen.
The cash paid cards, surely the transfer from your account to one of these is the same as a transfer to savings account? it can be seen? hoping creditfix either wake up or back down when challenged it is so blindingly obvious this is NOT additional income when it has already been declared
I suppose if you wanted to really stop it showing on statements, draw your allowance money out from the cashpoint, and load it onto your prepaid card at one of the thousands of 'paypoints'... luckily there's a paypoint with a flashpoint on the same premises...a bit of a faff, but if creditfix aren't going to be reasonable.....
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lifenoteasy
If you are in a situation where you are building up a significant savings balance "ready for the future" then potentially allowances are too generous and you have another asset that could be realised (or the interest could be.)
My savings are coming from the uplift I'm allowed to keep under the terms of the IVA.
If CF think they're getting their grubby mitts on that they'll be sorely disappointed. And answering to the insolvency service.
