If they raise my payments do I pay the debt off quicker or just pay more back e.g if I get a pay rise.
I pay £550 a month doubtful any equity in my property on my second year if they ask for more and i just say no, are they really likely to do anything as I would be forced to sell property creating another debtor, and would most likely just up sticks and emigrate leaving none of them with any money surely the amount i pay would be better than this?
Hey there and welcome to the forum. As Ang says, you will pay a bit more of your debt back. Don't forget, if you do get a payrise, then your expenditure may increase too, so that would be taken into consideration before increasing your IVA payments.
You will only be asked to increase your payments if your income has risen sufficiently to justify this. Make sure that at the time of your review you provide full details of your current expenditure to the IP, as increases here do need to be offset against incresed income before IVA payments are increased.
and if i refuse to pay more what can they do? None of them would end up with anything surely its better they just keep gett=ing the £550. I aqlso seem to be missing the point I thought the amount to pay back was fixed they dont make it clear(vantis) you can pay more I was told if i pay extra off it finishes quicker?
The object is to pay back as much to your creditors as possible, so even though an initial dividend is fixed, this can go up if your circumstances change for the better, but you will never end up paying back more than 100p in the pound plus expenses.
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
You have been badly advised. If you refuse to pay your Supervisor's reasonable assessment of an increased payment - which will be based upon information you have provided in any case - then your IVA will be in default and could fail.
Presumably any increase in mortgage payments will be factored into your current financial circumstances. In any event your IP would have discussed with you the level of contribution you were liable to make if your income went up from any salary rises. In any event it should not exceed 50% of any net rise (after tax) but any increase in living costs would be factored in. Check your proposal and discuss with your Supervisor (IP). Melanie is right. If you fail to agree with what your Supervisor requests he can and will fail your arrangement. YOu have got this far discuss these matters with him. Good luck.
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.
