Hi, I am currently 4 years into my iva, my income increased back in june and I sent in a new income/expenditure form and expected to hear back with an increased monthly payment. I rang to chase it up today and was told that my new disposable amount had been put on my record which amounted to £750 which completely freaked me out as I had worked it out at £300. I was told that my expenditure probably hadn't been put on (which I really hope as otherwise they have completely dismissed my own expenditure report!) She told me not to worry about it anyway as my payments won't change until january 2014 at my next annual review. My question is, why not change the payment now? Wont I just be in 6 months worth of arrears come january which I wont be able to afford? Any advice would be most appreciated! Many thanks, Emma.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
It is possible that your payments are not due to be reviewed until he anniversary so there will be no arrears. Trust your caseworker but to be sure keep a record of your calls and perhaps ask her to send an email confirming the conversations.
Hello and welcome -- the answer to this conundrum will lie in your paperwork. It is common for permanent increases in salary to be left in abeyance until the following annual review and any bet increase included in the payment from the month following. This will be detailed in your proposal.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
This aspect has always been a gripe of mine with Payplan. In the early years of my IVA, any increase in my monthly IVA payment (e.g. following a salary change or similar) was only actioned following my annual review, in accordance with the terms and conditions as set out in my IVA paperwork, which states ;
10(11) The supervisor is required to review the debtor's income and expenditure once in every 12 months by reference to latest form P60, pay slips and proof of increase in any expenditure. The debtor will be required to increase his monthly contribution by 50% of any net surplus one month following such review.
There's also a clause that states :
8(5) You must inform the supervisor at any time that you are in receipt of additional income. You must come to a satisfactory arrangement with the supervisor as to what increased amount should be paid into the arrangement.
However, once I got about 3 years into my IVA, every time my income changed (usually slightly for the better as a result of a tax code change) Payplan would write to me following receipt of my quarterly payslips demanding 50% of any surplus.
Given the content of my paperwork I don't see the legal basis for doing this apart from after my annual review, and although I've raised it with Payplan a couple of times (admittedly relatively low key as I'm currently going through a F&F so not keen to upset anyone) I've never had an answer.
Times like this that I really wished I had read my agreement properly. I've been told every year that a) 100% of any salary increase would have to go into the IVA and b) payments would increase at the time salary went up. As it turned out, I've managed to keep all of my marginal salary increases to offset continuing rail cost increase but it was a constant battle. I have exactly the same clauses pavel33, I could have directed the IP to this!
Unless it specifically states otherwise in your proposal, your IVA payment is only due to increase year on year at the annual review, following any increase in your disposable income (increase in net pay less revised expenses) so you do not need to worry about arrears and can enjoy the benefit of a few extra pennies in the pocket!
Any doubt though do check with your IP to be sure.
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Hi everyone, thanks for your replies it just says in my paperwork what it says in yours pavel33, my only concern really was because they specifically asked me to submit a new income and expenditure when I informed them that I was on maternity leave and some of my benefits had changed. My benefits have risen quite significantly this year due to my son being on high rate DLA and also the arrival of a new baby, it just seems odd to me that they would choosr to leave the payment as it is when they could increase it at any time! I just dont want to be hit with an arrears bill in january but from the sound of things I should be ok!
So can anyone from Payplan actually offer any clarification or legal basis for demanding 50% of any surplus income APART from after a month after an annual review ?.
Ironically enough when the boot was on the other foot, i.e. when three months before my annual review I received a much larger quarterly electricity bill than normal, the response of Payplan was "try to get through until your annual review".
My 4th annual review then took place, my payments were reduced. However a month later out of the blue I received a salary increase, and Payplan immediately demanded from that month onwards 50% of that increase.
It's not that I object to paying it, but if I stood my ground and refused to I'm not convinced my IP could do anything about it, and were I not in the midst of a F&F offer I would probably be taking that line with Payplan.
Hi elp87
You need to make sure that it is very clear in your I and e that the dla is for your baby and also in expenditure show that you are spending this for the purpose it is paid then hopefully they will offset the income and expenditure. You may want to send a copy of your entitlement letter to show this and make it clear esp if you get any disabled child premiums within any other benefits that you can show the expenditure. I would also write an accompanying letter advising this and explain yhat you have to use this for the intended purpose. I have seen the experts advise this for adults receiving dla so your payments should hopefully be the same. If not follow up with your ip sternly.
