Our household income has reduced drastically since I started my IVA so I have worked overtime to help increase our income - at my Annual review will I be expected to pay over the extra earnings even though our annual income is still less than it was when my repayments were set?
Did you inform your ip of the wage reduction? Given that overall you havent earned extra I cant see a problem but run anything like this by your iva firm to get in writing whats what.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Depending on the wording of your IVA you would normally only be expected to hand over 50% of any additional earning over and above 10% of your net declared income. If you can prove that over the year your net income dropped then you may not have to hand over everything.
It is always advisable to make your supervisor aware of any changes in your income especially if it drops and is putting any extra pressure on you.
Let us know how you get on.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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The overtime earned, will be firstly used to bridge the cash gap in your income - well it is done like that in my firm, but I cannot really speak for others.
Thank you for the replies - my IP is aware of the reduction in income as it has been shown on previous Annual Reviews & although I have always done overtime my IVA payments have never increased, however, this year's income is more than last year but not as high as it was when my IVA started.
If I do have to pay over the extra money, does anyone know if it is usually in the form of a lump sum or just an increase in next year's payments?
Also, will my IP automatically compare this year's income to the original figure or will I have to provide them with details of what our annual income was in 2008?
Last edited by karendwickhama on Tue Oct 22, 2013 11:10 am, edited 1 time in total.
If you owe monies into the IVA from uplift provisions, they usually have to be paid over within 14 days of receipt - but do check this out with your own IP to be sure.
