Job Change

[MM72]

Hi

I am new to this site as only just found it but please bear with me and appologies if this, as I suspect,has already been covered.

I am currently 2 years into my IVA I pay £650 a month which works out to around 0.33p in the £.

At my review last year I was sent a letter stating that they had underestimated the amount that I was paying and wanted to extend the IVA by 8 months. I wrote back saying this was unacceptable and that I signed a contract based on 5 years and for £650 a month to which I have heard nothing back. Are they able to extend your IVA as I thought this was 5 years and that is what I have signed into?

Secondly I have accepted a new Job with a different Company the base salary is £6k more per year with a bonus potential of £5k. My review has just been carried out. I would really appreciate some help with the following questions;

Because I have signed into my IVA at £650 will the payments to my Creditors increase?

If my payments increase when will the ammount be adjusted, at the review next year?

I have recently signed an ammedment form (as they said this was missing from the original paper work). It only states in there that any windfall, inheritance, Bonus, Commission etc need to be paid - based on the £5k potential bonus when would the 50% need to be given to the Creditors?

If my partner were to fall pregnant obviously I am going to need to start providing for the child how can this be shown as the increase in salary would effectivly pay for the child?

Many Thanks

[MelanieGiles]

Hi MM72 and welcome to the forum

Your IP can increase your payments, and is duty bound to do so if he/she feels that you can afford to pay more. You will be reviewed every year, at the time your IP has to compile the annual report to Court and creditors. Seems strange that they say they originally underestimated the figures - what was explained to you at the start of the procedure about disposable income and reviews.

If you have a child, then you will need to adjust your expenditure at that time, but this is best left until the happy event occurs as you will really need to reappraise your finances then.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi and welcome
They can increase the term of your IVA if your agreement stated that you have to return a guaranteed dividend of 33p and for whatever reason this is not going to be achieved by the 60th month.However the fact that you have only just signed the modifications relating to overtime and you have made all the payments but will not meet the dividend shows that your IVA provider is far from proficient !!
Once you have had your review your IP should notify you then of any increase and it is usual for ALL your pay increase to go into the IVA.Make sure that you allow for extra expenses so that this can off set some of the wage increase.
Your Ip may not ask for the 50% of bonus or overtime until the annual review so it,s best to send it to your IP as you earn it.
If your partner falls pregnant then your IP can revert payments back to the original payments without contacting your creditors.If your disposible income falls below your original payments then your IP will need to call a variation meeting.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MM72]

Thank you both for your replies; however I do have a couple more questions;

When do I inform my IP of my 6k rise? is it straight away or at the next review?

My current expenditure along with the IVA payment leaves little/no money each month. I need to equip myself for my new job which entails new suits/shirts/shoes etc...How can monies be available for this? Bearing in mind the 6k rise?

Can the monthly payments as long as they do not fall below the agreed figure of £650 be adjusted on the fly to accommodate circumstance change?

Thank you for your time and help

[Adam Davies]

Hi
Unfortunately your IVA is not that flexible.
You need to inform your IP of your wage increase but at the same time talk to them about the need for new suits etc for this new job and see if you can negotiate a missed payment.This can be repaid with your first few increased payments following your new job.
regards
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[perdurabo]

Hi,

Two questions:

I am paying an IVA. If I get offered a new job that, say, pays an extra 400 pounds a month, the creditors are entitled to 50 per cent of that additional income?

secondly, how do the IPs and creditors check this? In the annual review do they request payslips?

thirdly, what happens if I have a second part time job?

Regards and thanks

Perdurabo

[MelanieGiles]

Hi perdurabo and welcome to the forum

Your first question will depend upon the terms of your own arrangement with regards to uplifted payments, and also the way your IP interprets them. If you were my client I would reassess your income and expenditure to assess an increased but affordable payment.

Secondly, wageslips are used as the primary document with which to assess income levels, and if you get a part time job be prepared to increase your payments as well.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[perdurabo]

Thanks very much for your advice.

I suppose that any increased payments can then be negotiated...if it isn't affordable one would end up bankrupt wich isn't good news for the creditors.

regards

Perdurabo

[MelanieGiles]

Your IP would be very silly if he demanded payments that you could not afford, thus putting the IVA into jeopardy.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[perdurabo]

I know that creditors are not in the business of charity and that both my previous circummstances and my financial irresponsibility have brought me to my current situation. I just about scrape by every month and now I have a newborn daughter. I am not into sob stories but neither my wife or I have any relatives in the UK that would be able to help if anything happened to me. My wife can't work now and we have no savings and no assets. I want to get a new job paying more money so that I can save something every month. Otherwise, when I am 41 and I have paid my IVA I shall have nothing aside from the fact that getting a mortgage at that age will be even harder than now. How can I get around this? Any suggestions?

Thanks in advance

Kind regards

perdurabo

[Adam Davies]

Hi
Part and parcel of an IVA is that you pay all of your disposible income into it for the five year term so saving anything is very difficult.Once your IVA is completed you will have this monthly diposible income to yourself plus be debt free.
I wouldn't class this as having "nothing"
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[OPTIMIST12]

I would just like to agree with Andy - the whole premise of an IVA is that for the 5 year duration you pay the max (agreed) possible from your basic income into your arrangement. But dont forget - if your new job offers overtime and / or bonus you are normally allowed to keep 50% of these sums. And presumably your new born youngster will lead to a revised I + E at your annual review?

[perdurabo]

Thanks Andy,

Sure I will be debt free in five years and I don't want to sound ungrateful: I am lucky to have this IVA since in other countries bankrucpy is the sole option. I suppose that being allowed to keep 50 per cent of any extra income will have to do. When I had the chance of being financially careful I didn't take heed and now that I want (and need to) I cannot.

sod's law

[emma_t]

perdurabo

Don't be so hard on yourself, you are trying to pay back as much as you can via the iva to your creditors and will be debt free in 60 months which is a great thing.

You may not be able to save at this moment but when the iva is complete you will have all your monies back under your control, and can start a debt free life from then.

Best of luck with everything and congratulations on your newborn daughter
Emma x

[perdurabo]

Thank you for your kind words, Emma. I appreciate your positive attitude : It aint so bad. It is a matter of getting through this as best as possible. Thank you!!