paying extra during a payment break

[grangle]

I recently negotiated a three month payment break on my IVA. After it was agreed I got offered a secondment with a significant pay increase. I submitted a new income and expenditure form with offer of extra to pay. I have now been told that I will still have to pay the extra amount throughout the payment break.

Is this correct? surely a payment break is a payment break?

I don't understand it, if I was earning the extra money before the payment break then I would not be asked to make any extra payments

[luluj]

Welcome ... Your IP needs to explain fully why they have made this decision. What were the reasons for your payment break ? For what purpose ? If your circumstances changed considerably and your finances increased then did your payment break need to continue ? Are you now able to bring your payments up to date including the extra ?

[grangle]

I negotiated the payment break for three months to enable us to buy a car as our current car is on its last legs. my current payments that we are having a break from are £400, and the extra payments due to extra income will be £270. After paying the extra amount there is not a huge amount left of the higher income ( am wondering why I bothered to be honest!). We will still need the payment break to get the money together to get a half decent car to last us the last two years of the IVA>

[MelanieGiles]

I am a bit confused. A payment break should only be invoked if you need one, so if your income has increased during that period why do you still need the break?

[grangle]

the payment break has only just started and was to allow us time to get enough money together to buy a car. the income increase has just happened and will be nearly all swallowed up by paying to iva so the payment break is still needed. If the income increase wasn't nearly all swallowed up then I wouldn't need the payment break.

[Foggy]

Hi Grangle -- the income increase shouldn't be "nearly all swallowed up" by the IVA. Check your paperwork ... these days only 50% of the net increase should be payable.

[MelanieGiles]

I agree with Foggy - something does not sound right here. Please check the figures once more with your own IP to be sure.

[Shining]

Hi as others say check your paperwork and as your IP for a breakdown of their calculations.

[grangle]

thank you - I am definately paying more than 50% of the net increase so I will get that checked.