My husband has just gone into an iva in his name only. I only work part time at present and my wages have been taken into consideration for the household income. I am hoping to get a better paid job with considerably more hours. Could you pleae tell me how much of my wages they will want towards the iva. Is it worth me getting better job. None of the debt is in my name at all, We have 2 young children and 2 dogs and the debt is £38000. As I am only working very minimal hours at present and only my husband is working full time, his iva amount per month is set at £170.
It is not a case of them wanting your wages for the IVA, but just to ensure that you are paying a higher level of the shared household expenditure given your increased earnings. This, in turn, will enable your husband to increase his payments.
Only you can decide whether it is worth getting a better paid job, but I certainly would not put you career on hold for the next five years as a result of your husband's debts - but perhaps you should consider whether you benefitted at all from his debts.
thanks for the reply and yes of course, we have both contributed to the debt and I am just as responsiible for it as he is. What I really meant was how much would I be expected to put towards the IVA. For example, if I earned £500 a month, would they put up the IVA payments by £500 a month? Is there a percentage?
If the Iva is just in your husbands name, then you are not expected to make any contributions towards that, just towards the household expenses.
Any disposable income of yours, is yours to keep.
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
So if I started earning £500 a month and paying for the food bill etc, is there a percentage that they base it on that would then put up the IVA? Yes its all in his name but we are dealing with it jointly as in the budgeting etc. Is there a maximum or minimum they take. I saw on here another post which mentioned the 10% 50:50. Would that be the case with us do you think? Sorry to go on, bit confused. I want to help with the finances as much as possible:o))
The 10% and 50/50 usually refers to overtime and bonuses.
Your husbands IVA will be worked out on the disposable income he has available, so if you start to earn more and put more towards the household expenses, then he will have more left over to pay towards the IVA.
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
Sorry, I'm not very good at explaining myself. I am making it sound like its his debt and I am doing things seperate.
What I am trying to find out is, we are obviously budgeting hard like everyone else in this situation. I am looking for a better job to help out and to hopefully have a little more money for nice little special things and days out with the kids in the summer. A holiday is definitely out for a few years but I just thought if I could help more then I would. I am just worried that anything I earn will just be swallowed up in the Iva and budget etc
To use your example, if you earn £500 per month, you would not be expected to pay that £500 a month across. You just make contributions to the household expenses and as far as I am aware, the rest is yours to do as you want with.
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
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
Try to think of it in terms of your household expenditure being fixed, but as you will be earning more money, your notional share of those expenses for the purpose of calculating your husbands disposable income will increase. Simple example - your husband earns 20k a year, and you earn 10k a year (so 30k total of which your husband earns two thirds and you earn one third) - lets assume your monthly food budget is say £300. This will be be allocated £200 to your husband, £100 to you (two thirds to him, one third to you). If you then start earning the extra £500 a month, your salary will go up to £16000, so the proportion of the food bill will be adusted accordingly to roughly £170 to your husband, and £130 to you (as you now earn 55% of the total household income, so you have to be allocated 55% of the household bills). So as Jan says, you will find that not all of your extra money will be expected to be paid over, it just means that your husband will have more spare income to pay in as you will be allotted a higher proportion of the bills. Hope that makes sense?!!![;)]
Sorry, typing error! That should have read your HUSBAND now earns 55% of the total income (so his share of food bill works out at £165 per month using the £300 example), so as a result of your increase in wages, he has freed up £35pm extra to pay in to his IVA.
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
Oh God!!! The actual IVA creditors meeting was today and we had all assumed that it would go ahead. Big no no, Northern Rock have said no and they are the main creditor. the others have said yes but suppose thats it???
They have said no cos they are saying that the equity in the house is enough to pay of the debt. We have 2 small children and dogs and we don't want to sell out house and rent:o/
/