Hi, we are just entering the 4th year of an IVA, all OK up to now but having submitted our payslips, P60 etc as per the annual review NTF Financial want to increase our payments by £120, having submitted our outgoings they seem to have reduced around 70% of each outgoing, for example if we listed Petrol £240 per month, NTF have rounded this down to £200 so it looks as if we have more disposable income than we actually have, it says on the paperwork we have 14 days to appeal against their findings, I intend contacting them tomorrow and explaning our concerns, is there any other advice you could give in this situation?
There should be no reason for your IP to adjust your figures presented to creditors within their annual report, without prior discussion with you and approval. It is likely that they have used the maximum figures currently operated within the profession, either from the Money Advice Trust or StepChange - however it seems odd that they have adjusted petrol expenditure, which should be based on your actual usage, rather than guideline figures.
The IPs from NDF do occasionally appear on the forum, so they may pick up on your post, however given that they have allowed you 14 days to appeal their assessment, I suggest that you crack on and make contact, and listed to what they have to say about the figures they have reduced, and importantly their reasoning for this.
Hi Melanie, thank you for your swift reply. My wife contacted NTF Thursday morning regarding our concerns over the adjusted figures, the lady she spoke to was very sympathetic, our proposed increase is on hold and she is sending out some paperwork detailing our listed outgoings highlighting the lines we are at the maximum on, hopefully we can come to some arrangement so that their proposed increase is not as large as first proposed.
With regard to the different monthly outgoing lines which ones have a maximum figure that you are allowed to claim for? For example I read on another post Newspapers were £5 per month and Sky £21 per month?
Last edited by Carl.ph on Sat Feb 15, 2014 1:48 pm, edited 1 time in total.
It should be based on what you actually spend Carl, not what the maximum allowances actually state. Work out what you spend on newspapers and Sky each month, and advise your IP accordingly.
We are sure we will deal with your concerns. Without knowing the specifics of your case we can not give exact advice. However as most of the cases we supervise are governed by the IVA protocol with respect to most expenses we can look at what you spend but there are guidelines that we work within, and if you spend more then this has to be justified. We disagee with Melanie, however, with regards to spending such as sky and newspaper as there are clear guidelines set out and agreed by all stakeholders and without valid reasons there can be little justification to step beyond these.
James Kaye and Nick Morgan, Insolvency Practitioners with over 30 years combined experience.
If Sky includes your landline and internet then it will be more than the basic £21
Petrol should be the amount you spend travelling to work and shopping etc, not a set amount as per guidelines
It is vital for all concerned that an IVA is affordable, paying all of your disposable income for 5-6 years is a big ask so calculating a fair amount to pay is essential for a successful outcome
I would draw your attention to Paragraph 6.2 of the StepChange guidelines - TCS Validation Limits, with regard to client spending on newspapers and satellite TV.
We will not be drawn into an open debate over the merits of the current guidleines, but our stated position is as above in that the guidelines can only be exceeded when valid justification has been provided, as expected by creditors when they signed up to the protocol. We will address Carl's situation by discussing it with him, and all debtors, directly and openly.
James Kaye and Nick Morgan, Insolvency Practitioners with over 30 years combined experience.
