job worry

[jane.l]

another worry I have now is my job, I am not even sure our IVA is going to work and even bankruptcy may be the only way we can go, but what happens if I had to get another job and earned less money if we had been in the IVA for, say, 18 months? would they reassess our income and we would be able to pay less??? Same applies if I got a job earning more money, would they want higher payments???

[Sarah]

Hi

I think the case may be that you will have to do a re accessment I certainly know if you get a much higher paid job then this is the case it is better to do it this was otherwise they will take 50% but with the new job you may have higher expenditures like petrol for example so it should work out better for you than paying 50%. But I ma not sure wha tthe case wll be if your wages drop

[accgroup]

Hello

Yes, if your circumstances change during an IVA your IP will need to review your new income and/or expenditure (this is usually done annually anyway with a view to increasing monthly payments). The terms of the IVA will usually provide for upward elevations of monthly contributions but not reductions.

If you have to reduce your contributions your IP may have to put together a variation to propose to your creditors which will involve convening another meeting. A common modification which is currently used by creditors is that no variation can be proposed with the first 24 months of an IVA, therefore if you had this modification and wanted to vary in 18 months time you would not be able to.

Hope this helps

AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[neverending]

If your income falls then you must ask for a variation meeting regardless of your terms and conditions of your IVA.You can possibly reduce payments and make up the shortfall by extending your IVA.
On the subject of a pay rise/promotion then ALL of this can go towards your IVA and not just 50%[this is normally just for overtime/bonuses].Silly I know !!!