extra outgoings and I am struggling

[MelanieGiles]

Ang

In the first year of the IVA, I take 50% of any uplifted payments on a quarterly basis from my clients. At the end of the first year, I review their basic salary to see if the bottom line benchmark ought to be increased, and also whether there is additional expenditure. At this time this occasionally results in a request for general increased payments over the next twelve months, but the new benchline then drives the bottom line for overtime calculations in future.

For example:

Year 1 Salary of £1,000 - anything above this figure is divided in two and one half paid to the IVA.

Year 2 - Salary increase to £1,200 with expenditure increase of £100 per month. So £100 is added to monthly contributions, and £1,200 becomes the new figure to review against.

I just find this method a fairer way of doing things.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[aguise]

Thanks Melanie
I have only just reached the first review so I am eager to see what they do. I was working on the fact that I only pay 50% of the wage increase, whereas some pay all. I have not included my wage rise each month when I pay overtime, and have left this to the review as it is a small amount.
Gosh hope I've got it right, but either way we are managing well and are happy so in the end thats what matters.
Thanks

Ang

[Adam Davies]

Hi GDR
What is the point of you filling out a new I+E form if your IP is not going to take any notice of it ? Nearly everyones base line will increase each year as utility,petrol and food all increase.
Have you actually spoken to your Ip or has it been one of the assistants ?
You really need to talk with your IP and ask them to explain why your expenditure allowance has not changed in three years.
I really can,t understand it
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[gdr]

Hi Andy,

Yes, you're right, I haven't spoke to my IP directly, it's always one of his assistants. I was under the impression when I took on the agreement that the baseline would be changed each year but am disappointed that this hasn't been the case. I'm now really worried that they may make me bankrupt as a result of this and I really don't need that. I think I need to get in touch with my IP directly and ask some questions. It seems strange that they review my I and E each year but continue to use the original baseline. It's something which has me really worried.

[Adam Davies]

Hi
Be persistent and get hold of your IP.Don,t give up and let this forum know how you get on.
Good Luck

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[iva_squirrel]

Hi gdr,

I agree with andy, you really need to get in touch with your IP. Your income and expenditure should be reviewed every year and if thats not happening you should try to speak directly to your IP and ask them to explain it.

Regards,
Michelle P.