Hi all, I am a year into my iva and my review should be due shortly. I am just about to get a promotion at work which should mean I will be able to make a bigger payment. I'm currently paying 150 on a 5 year agreement. If I start making bigger payments will my iva term be reduced??
What's more stressful, living on a budget with a big clock counting down to freedom or not knowing who's going to call you next asking where there money is??
It's not what we do, it's how we deal with it that counts
Hi Robd ... unfortunately your term will not be reduced unless you hit 100% of the total original debt plus fees. Any increase in payments will result in an increase in the amount of debt you are able to repay.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thought so but thanks for the info. Just reading through my paperwork. As a guesstimate am I right in thinking that 50% of my salary increase will go on top of current payments? Also child credits have been overpaid so have to pay that back and housing benefit had been reduced. With this and the cost of living going up will my new monthly payments be calculated with this in mind??
What's more stressful, living on a budget with a big clock counting down to freedom or not knowing who's going to call you next asking where there money is??
It's not what we do, it's how we deal with it that counts
Your payments should only increase by 50% of the extra income so you could save your share and offer it later as a full and final settlement. Otherwise let the IVA run its course and things should be a lot easier now.
Increases in expenditure should also be used to offset some of an increase in income -- the increase in payments will be based upon 50% of the net gain.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Cool, thanks for your help. So much to consider an as I am only a year in I am still finding my feet.
Thanks
What's more stressful, living on a budget with a big clock counting down to freedom or not knowing who's going to call you next asking where there money is??
It's not what we do, it's how we deal with it that counts
Debt free direct. They were so good when setting it up and I was pleased with there service. Since it was all set up it seems to be a different story though. I get mixed advice when speaking to them. My review letter arrived today so will make the amendments on the expenditure sheet and see what they say. Have no problem in paying more towards what I owe. For me an iva wasn't a way of getting out of paying what I owed., just like many others it snowballed out of control and needed help
What's more stressful, living on a budget with a big clock counting down to freedom or not knowing who's going to call you next asking where there money is??
It's not what we do, it's how we deal with it that counts
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
Your payments should only increase by 50% of the extra income so you could save your share and offer it later as a full and final settlement. Otherwise let the IVA run its course and things should be a lot easier now.
Ok, I need a bit of clarification on this one..
say my net pay is 1000 and my iva payments are 200, if I get a raise to 2000 after tax, will my payments be 700 (original + 50%) or 1200?
Payments on net pay at £200 -- increase in pay of £1000 -- extra payment £500 --- so new payment is £700.
Some IP's will take the £700 from pay day. Others will wait until the review and then increase from £200 to £700 -- leaving the extra before review in your pocket.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
so say my review is in January, I get the raise in March, is it 200 or 700 a month (I would assume 700 (well - the 10%) as thats the basic 10/50/50 rule), what happens in the following review, still 700/month or upto 1200/month?
10% disregard doesn't apply as this is a permanent pay rise, not overtime.
review January payment set at 200 --- pay rise in march carry on at 200 (unless you IP is one that applies the rise right away). Review next January -- payments rise to 700.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Bear in mind that the uplift is 50% after allowing for increased cost o living. Increase in net pay £1,000, increase in living expenses £200, payments up by £400. It does depend on your proposal as to when the increase kicks in but normally you cannot refuse any reasonable request from the IVA supervisor.
yes the review looks at the increase in your disposable income -- the terms of the iVA generally state that 50% of such increase is payable ---allowing you some reward for the increase in income.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Remember to keep the lines of communication open between you and your IP.
