if i change jobs and to pay an extra childcare?

[gee_r]

if i change jobs and earn an extra £400.00but have to pay an extra £100.00 for childcare how much of the remaining £300.00 will my creditors want

[carlmcmullen]

Need to check your propsal and Nom's report but i suggest normally 50%.

You need to also take into account any change in fuel costs, parking costs, does you new job require business dress and will there be any additonal dry cleaning costs, meals at work etc etc etc......

Make sure you highlight any other change in your I&E as although your childcare costs are increasing it is likely your Tax Credits will also.

Your IP will conduct a full income and expenditure review once you notify them and it is better to let them know sooner rather than later.

Carl

[MelanieGiles]

It is possibe that your IP might argue that the additional £100 should be paid out of your share of the additional earnings, thereby leaving you with £100 and the creditors with £200 (assuming you have the usual 50% uplift provision). If this is the case, then you should seriously question whether it is worth doing, if you only end up with a quarter of the earnings.

[Adam Davies]

Hi
It is also possible that you will be asked for the whole of your payrise,less expenses so be sure to check with your IP
Regards

[Beechy]

Hi
Seems a little unfair that you have increase of £400 and only end up with £100.
There must be an argument that expenditure has increased by £100 which should be deducted from the increase before the calculation of additional payments to creditors.
Otherwise the clause for increase should read 75% of increased income to go into the IVA.
I have read that going forward that additional income must be declared within 14 days and 50% to be paid into the iva.
Looking at this case there is going to be a need for a provision to recalculate the IVA payments if there are also addition expenses incurred in generating the additional income.

[MelanieGiles]

It depends whether you take the wording of the clause literally or not. Some IPs do, and some interpret with the debtor's interests in mind.