IVA Approved But Will They now take ALL maternity

[getdebtfree]

Hi all and a big hello I just came over from the moneysavingexpert forum

Ok my IVA was approved JAN 16TH, this was based on my income at the time, and I started the process back in October.

Now I already have had changes to income and tax credits plus more expenditure so things are even tighter.

Now my wife just started receiving maternity pay a month before our IVA was approved. We didnt know we was intitled to it but applied anyway.

So now my worry is will the IVA company take all that maternity pay?

At the time of our income and expenditure we was bringing in 2044 a month...

Now we are bringing in

1892 a month...

Our IVA payment is £100 a month but that was worked out when we were bringing in 2044 a month.

My wife is now going to get £534 a month extra for nine months of course we expect to pay 100 - 200 quid extra a month but will they want ALL of it??

Be handy to be able to buy some baby stuff with it, and maybe live a little better for nine months.

I was told on here that any extra income you keep 10%, then the rest over that you share 50/50.

So if I was now only bringing in 1892 a month which is already £152 less a month than our original expenditure.

Will we say keep £152 a month of my wifes extra £534 a month maternity?

Then give half of the rest to the IVA company?

Just trying to get an idea as its taking ages to get an answer from the IVA compnay.

Hope someone can give me an idea cheers in advance.

[MrsR]

I would recommend you speak to your IP asap, as only they can really tell you what they will want.

I would imagine that if they want a protion of the income, they will want anything backdated to when it started, but will probably ask why they were not informed,

[getdebtfree]

Hi Mrs R oh our IVA was not agreed untill 16th Jan 2013.

My wifes maternity allowance agreement was sent to us on jan 2nd 2013

So that income did not even exist in our minds in October 2012 when we first started applying with our IVA company.

We have informed our IVA company literally a week after our IVA approval that we was to receive this extra income. We will receive it for 9 months.

I was only trying to find someone with a similar experience on here as I read that a 10/50/50 rule applys after receiving extra income.

Cheers

[MrsR]

In most proposals it is 10% 50/50 on any extra income such as bonuse or overtime but not sure atbout mat leave.

I would think that they should follow the above rule, but would depend on your proposal wording.

Well done for trying to sort it out asap - last thing you want is a letter wanting extra funds 2 years down the line !

[getdebtfree]

Thanks MrsR,

Yes I pretty much told them straight away. our income has already gone down from original proposal. We never thought we could get maternity pay be nice to have some money for the baby.

Thanks

[wiggle1]

I hope you get to keep some of it, babies are expensive, but such a blessing too!

[MrsKnight]

Hi getdebtfree,

Firstly welcome & congratulations on the new arrival & your IVA being approved, which company are you with?

This definitely needs resolving quickly with your IP, it's a difficult one to answer as its a substantial amount for a short period of time. And you will be adjusting to your new arrival & the expenditure that brings too. If it were a pay rise then we would normally say, inform your IP & they would do a fresh income & expenditure or leave it till the review time. But with it been a set amount for 9 months & then dropping to how things were before, are you still going to be able to cope? Also if your expenditure is going to go up, then the 10/50/50 won't work & you may end up paying to much of the maternity pay over.
I'm a mum of 3, we had a baby last year in our IVA, when our income went up (child benefit, tax credits) & with a new arrival we were able to keep all the increase as our expenditure obviously went up.
I thought it would just be nappies, wipes, food, milk, clothes etc. But you put the heating on more to keep little one warm, electric goes as your always washing - washing powder too etc! Its all lots of little things add up, then as they get bigger its gets more expensive!

I really would get on to your IP / IVA Firm & have a word with them about it, let us know how you get on.

[getdebtfree]

Thanks for all the replies everyone

I am hoping there is someone on here with a similar experience to mine regarding maternity pay.

If anyone recalls seeing such posts if they could point me in the direction of those would be appreciated.

Cheers

Marcus