I have a single IVA but my wife earnings were taken into consideration when my initial I&E was completed.
If at annual review they ask for my wifes payslips does she have the right to say no and if she did where does that leave me?
The other thing is my wife has increase her hours and thus her take home pay since they start of my IVA but she did this as her car died and she used the additional income to finance a new loan. So though her income has increase significantly her debts have also increased to virtuallty the same amount. How do I go about mentioning this at annual review and what is likely to happen?
If there is only you in the IVA, I think your wifes earnings will only have been taken into consideration so the IVA company could make sure that you were both paying your fair share into the household expenses.
Did she have to provide payslips initially? She may well be asked to provide them for your review. I don't know what would happen if she refused.
You can account for her extra money being spent on the car, so I don't think you will have any problems.
Just tell your company exactly what has happened.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
If there is only you in the IVA, I think your wifes earnings will only have been taken into consideration so the IVA company could make sure that you were both paying your fair share into the household expenses.
Did she have to provide payslips initially? She may well be asked to provide them for your review. I don't know what would happen if she refused.
You can account for her extra money being spent on the car, so I don't think you will have any problems.
Just tell your company exactly what has happened.
Her payslips were provided when the IVA was set up but they didn't ask for them at the first review. Now at the second review they want them.
I would ask why they need them this time as they didn't have them last year.
Who is you IP by the way?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
IP is Debtlifeboat.
I sent off everything the same as I did last year and they've come back and stated they need my wifes payslips so I can ask but they probably have a reason and I don't want to go upsetting them by refusing. I guess I should write them a letter explaining the situation or should my wife write to them?. The whole single IVA things seems to get very confusing when applied to two peoples finances, it's very difficult to know exactly what the IP is entitled to see/ask for especially when my wife still has her own credit to service.
MelanieGiles wrote:
It is a reasonable request in order to verify the correct contribution towards shared household expenditure - your wife's P60 should suffice.
But will they be happy that she has increased her pay by £300 a month but also now has credit of £300 a month to service? (it's not all credit part of it is because of her extra pay we no longer get a tax credit she is making this loss up from her higher pay but the rest of her extra money is now paid out on a loan/CC bill etc)
MelanieGiles wrote:
They have no say over what your wife does with her money, or her share of any disposable income.
Thanks for that. It's sort of what I though (hoped!) but I wasn't 100% sure. I've been reading through all the T&C's etc in my agreement and it doesn't mention anything about this.
I guess it's best to put everything out in the open, declare my wifes current earnings and her current outgoings and see what they say.
I only provided my payslips to start the IVA, thereafter I refused as I was not in the IVA only my hubby.
What did they say when you refused? Still not 100% sure which way to go on this one. I just have a feeling that they will not be happy if I don't provide this information, yet it's not really mine to provide.
Interesting points. If wife not in IVA how do you apportion the share of household expenses? I would suggest pro rata on gross income. However in catflats case his wife has used the increase in income to support herself by entering into a credit agreement for a like amount.
Hence on paper the wife should contribute a little more towards joint household expenses BUT is not able to because of her own choice.
This causes a problem for the IP.
Whilst also refusing sight of wife's wage slips causes another problem for the IP.
Cooperation with the IP is essential for a successful outcome to any IVA - and these issues causes problems.
I think wives (or husbands if position was reversed) owe a duty to help each other out and provide the information requested (not withstanding it was not asked for previously)and whilst the IVA may be in respect of one of the spouses in practice it affects both parties and cooperation and full disclosure is to the IP is essential.
Going back to catflat's wife deciding to purchase a new car based on her increased salary and extra hours she was working and the fact that her car had died should have initially been discussed with the IP and what (if any) would be the affect on his IVA? It may well have had no effect.[?]
Last edited by David Mond on Sat Apr 11, 2009 4:06 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I do think that it is wrong that the partner who is not in an IVA should be penalised.
If catflaps wife wants to buy a new car, she should be able to do so without having to consult the IP. As she is contributing towards the household expenses, and that has been shown in the initial I&E then that should be enough.
I accept that her income needs to go down for any future reviews to show that she is still contributing her fair share, but everything else should be hers.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Whenever I am considering the position of the non-insolvent spouse, I have in mind the principles which would also exist in bankruptcy and debt management. There is no way a Trustee in bankruptcy, or a firm providing debt management services would be looking into a wife's salary too deeply, and therefore I don't believe we need to do so in an IVA - apart from knowing how much the spouse's earnings are.
IVAs work best when the debtor is comfortable with the payments which have been set up and agreed with creditors. Once this is done it is then time to get life back on track and put the arrangement into the background. Of course if their financial circumstances improve over the period of the arrangement, then they have to be prepared to pass that improvement on - but to suggest that a non-insolvent spouse would need to run her intention to purchase a car on credit is (in my opinion) stepping over the boundary of duty.
Hi
It is a difficult subject.
Where couples "pool" their incomes etc then I can see no problem in providing any info needed.
The problem arises if the couple keep their finances seperate and the non IVA partner having to show bank statements/wage slips. Anther factor to take into account is if the relationship is fairly new and all debt was built up prior to the couple living together.
As I say not an easy situation to deal with
Regards
