my husband and i are looking into an iva and wondered if someone could help me with this question. My husband currently works and so we are hoping our joint iva will be accepted for the both of our debts (no joint debt though). I would like to go back to work when my daughter can go to nursery and so im wondering what the policy on my wages would be. Would all of my wages have to be paid towards the iva? Or is it a percentage. I know it sounds a bit harsh but i dont see the point in returning to work if the creditors would want all of my wages!
Also if my husabnd gets a pay rise half way through a year do they take all of the pay rise?
Hi Kate, if you were to become employed whilst in the IVA then you would be required to include all of this income into your IVA. You would more than likely go through your income and expenditure with your IP as some of your income would be offset against expenditure, for example transport & childcare costs. With regards to your husbands payrise, this would also need to be included in the IVA. You would just notify your IP at the annual review stage.
Hi, my name is Nick Payne and I am an Insolvency Practitioner with Payplan.
Read the Payplan blogs by visiting our website www.payplan.com
Your IVA will be an interlocking one which means that you make just one monthly payment but the debts are seperate.
Any increase in income will have to be notified to the IP and you will certainly have to pay some of it across. It will depend upon your expenditure at the time as to what was taken.
The same will apply to your hubby. Some IP's look at a payrise straight away, others wait until the yearly review.
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Hi Kate.k8 - remember an IVA is about trying to repay back as much of your debt as you can so if you are earning and can contribute more then it benefits everyone. It will also add confidence to your proposal if the creditors know your intention is to return to work when you can otherwise they may ask why you are not working to help reduce the debt being written off.
As Nick rightly says the additional income will be offset against increase in expenditure so you would not be worse off. If the cost of childcare completely offsets the income then yes there would be cause to question the benefit of you going back to work at that point.
Best thing is to call a couple of companies to discuss your situation in full and go over your options.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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