I entered into an IVA at the start of the year. In April the government raised the Income Tax Allowance and now I receive an extra 14 pounds a month on my paycheck, I have only just realised this as my circumstances never change so I have little need to look at my payslips. My question is do I have to pay the extra money into my IVA or do I pay half of the amount. If so would it be done at the end of the year or paid as soon as possible. Still getting used to being in an IVA and very anxious that I may get into trouble for not noticing this sooner.
Hi and welcome to the forum. Are you submitting your payslips regularly to your IP?
Personally, I would talk to your IP about the increase in income but with everything going up utilities include one may offset the other but best to keep them in the loop and that way no nasty surprises at review time.
You'll not be in trouble I'm sure and something maybe a quick email or phonecall to your IP will sort. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
One thing you could do is open a savings account/ISA and pay this money into it and any savings you can make on youe I&E, If then the IP retrospectively asks for say 50% of that payrise at review time it's there to be paid as you haven't spent it but you earnt some interest on it while it was in your savings account which is of course yours.
Last edited by herbekj on Tue Oct 16, 2012 6:11 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
Hi guys, thank you all for replying, I appreciate it! I'm going to ring my IP tomorrow and see what they think. Also I haven't given any payslips yet, They told me they review it all near the end of the year so assume I send it all then.
Can't believe I'm 10 months into it already, Definitely the best thing I've ever done. Went through a near suicidal period of time during the dark days of my debt but now looking forward to the end date!
speak to your IP as you suggested yourself, but I would imagine as the imcrease is £14, they may not change your monthly payments. Dont missunderstand me, I know £14 some months can be a huge amount of money when working to a tight budget, but I think you will find you are ok
Fuel prices are going up, Morrisons have put 2L milk up from £1.18 to £1.48 and the other supermarkets will follow due to increased monies paid to farmers, so theres a good chamce your £14 may well be eaten up by above average fuel and food inflation, Forget the 2.5% shwon on tonights news, you can bet thie next few months will see inflation rise.
Ive surprised myself with the last paragraph, i almost sound intelligent !!
Last payment made April 2012
Certificate received 1st Nov 2012
It is such as small amount, that your IP may well waive the need to increase your payments on the basis that a full review will be conducted at the anniversary, but best to check to be sure. As others have pointed out, you may have additional expenditure which will negate the need to increase your payments in any case.
I'll just have to see what they say I suppose. Thanks again for all your help guys. Even though it is such a small amount I feel better from everyone's advice. Really want this IVA to go through smoothly!
