Pay Increase & IVA Contributions

[mwood72]

Hi,

I've been in an IVA for 4 years now heading towards my 5th and final year.

In a couple of months my financial situation is going to change considerably for the better as my pay rate is going to pretty much double meaning I will be taking home quite a few extra hundred pounds per month after stoppages.

I am a little vague how this will affect my monthly IVA contributions. I've read some places that 50% of this increase will be added to my contributions and some places that 100% will be added to my contributions. Could anyone confirm whether this will be either 50% or 100%?

Also due to my dire financial situation I am currently living at home and my Mum has been largely subsidising me as far as living expenses go. If my income is to improve would my Mum be entitled to a more realistic financial contribution from me before the remnant of my extra income (be it 50% or 100%) is made available to my creditors?


~Mike

[aguise]

Hi Mike and welcome to the forum. The best way to find out is to speak to your company and ask them. Also have a look at your proposal and see what it says about pay increases, mine says 50% of any rises in basic income but some do say all of payrises.They vary quite a bit.
Speak to them, and if mum hasnt had a rise in 4 years I think it quite reasonable that she should now. Ask to fill in a new income and expenditure as a lot has risen of late and the rise should be able to offset some of this.
Well done Mike for nearly reaching the end, wish I was there. A great achievment to be nearing the end.
I am not a technical expert so wait for other answers.

All the best

Ang

[mwood72]

Thanks Ang. All the best with your IVA. It's a tough time but I'm sure a feeling of elation will ensue once we have reached the end

[MelanieGiles]

The answer to the increased earnings lies in your proposal documents, and you will need to discuss the issue of increased rent with your IP. Personally I would not necessarily rock the boat with seeking to increase the payments to your Mum whilst still in an IVA. This could be caught up when your IVA has completed - although if she is suffering financial hardship then this is a different matter. Chat through with your IP.

[mwood72]

The answer to the increased earnings lies in your proposal documents, and you will need to discuss the issue of increased rent with your IP. Personally I would not necessarily rock the boat with seeking to increase the payments to your Mum whilst still in an IVA. This could be caught up when your IVA has completed - although if she is suffering financial hardship then this is a different matter. Chat through with your IP.

Hi Melanie,

Thanks for your reply.

Please could you expand on what you mean by if I were to suggest I should contribute more to my Mum ref living expenses if I were to start earning more this could be caught up when my IVA has been completed?

I worked out I have only been contributing about 1/3 of what it costs her to keep me up to this point in my IVA and although this has caused her financial hardship she has been doing this to enable me to offer a resaonable contribution to my creditors through my IVA and avoid bankrupcy. My only thinking was if I were to earn more shouldn't I try to lessen some of the burden from her? I appreciate I shouldn't expect to gain from any extra income during my IVA personally and any disposable income after my living expenses should be made available to my creditors.

That said I don't want to rock the boat having come so far.


~Mike

[MelanieGiles]

I cannot advise on specific arears Mike. You will need to discuss this directly with your own IP who has detailed knowledge of your case.