i'm reluctantly going into an IVA this month. I receive £560 per month in wages, the rest is topped up by WTC and Child Ben, as a single parent. My Problem is with the 10% clause. It sounds great for those earning 1000 -1500. but for me if I get more than 56 pm more than the usual wage (that the holday cover I have to do for my job share). then 50% get clawed back from the IVA co. But on top of that any additional earnings are also clawed back by WTC. so I dont get a penny, but Ive had to pay extra child care and extra travel expenses. This clause seems particularly punative for single parents. Is it a clause that can change 'wages' for 'income'.
It depends on the wording of your proposal. Our standard says income as disclosed so would include any reduction in Tax Credits to off set the increase in pay, but you would need to provide evidence of all the income earned in any period. Just clarify how your nominee would look at this.
I do not think that you have anything to worry about as most modifications do specify 'income as stated in the proposal' for any uplifts. Make sure at the time of the meeting that you do accept any other type of modification as creditors will easily amend a standard modification to suit someone in your position.
If you are really unsure as to whether an IVA is right for you, it is not too late to pull out and consider bankruptcy - you may be better off in the long run? Don't do an IVA unless you are 100% certain you can maintain the standard of living set for you - life in an IVA is tough!
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Reluctantly going into an IVA is not good, you need to be wholeheartedly going into one in my opinion. I have never had any regrets during set up or in first year. I know it's not for everyone but it is for me and I am happy to be in one and the pressure it's taken off me is immense and worth every penny I'm paying in.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Regardless of what the proposal says, common sense should prevail when it comes to reviewing these things, and the IP must exercise an element of discretion. I do, and this is perfectly acceptable to both creditors and professional regulators, so long as you can justify that you have acted in everyone's best interests.
Hi, unfortunatly the company does seem to be only applying the 10% rule to my part time wages. Today one of the admin/drafters said that it was because the wtc was fixed not variable... but this isn't true, if i earn more than expected, wtc will ask for money back... thats variable isn't it....
this company phoned me, and 4 months on just getting to proposal stage..one of the worst things about an IVA is that once you accept the advice, you cant change your mind, go for that consolidation loan, and get a lodger... once payments are missed.. thats it no other way out.
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If you are only just getting to the proposal stage, it is not too late to change companies, doesn't matter if you have missed payments or not.
You need to have a good relationship with your IP, and it does not sound as though this one is going to work for you.
Check out some of the experts who post on here, all come highly recommended by posters on here and their details can be found under the expert link on the left hand side of the page here. Or visit www.iva.com for a list of companies and reviews.
YOu will get better service than you appear to be getting at the moment, and they will go over all your options with you.
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
Your proposal needs drafting carefully to take into account your concerns. Please see another firm who are prepared to put this forward on your behalf - let us know how you get on. Good luck and don't worry.
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.
If you're not happy with the company and the proposal then please don't go ahead with it as there's an increased chance it will fail. It costs nothing to speak to another IP, and 5 years is a long time if your not happy.
