The amount I am paying will cover the debt/fees

[s.b]

i currently pay £543 per month ona debt of £45,000 which includes all the fees. I have since had a pay rise and am willing to pay an additional £250 per month which equates to around 50% of my pay rise. i can afford to live quite comfortably whilst paying this but can they demand more as I have money spare at the end of the month? The amount I am paying will cover all the debt and the fees. If I had known about this pay rise I would probably have never taken out an IVA and also I had a bonus 3 times per year which is now included in my salary which was agreed at the time that they would take 50% of, does this change things now that it is included in my salary - they are looking into things for me at the moment and it may be that they don't ask for anymore but I would like some advise in case they do, thanks a lot

[MelanieGiles]

Hi sb and welcome to the forum

This will depend upon the actual terms of your IVA, but assuming you have the usual 50% uplift modification you should only need to pay half of your payrise for now.

At the end of the year, however, your IP should revisit your income and expenditure and set a new payment amount based upon your earnings less your expenditure. This revised figure then becomes the new benchmark for any further 50% uplifts - so in theory you could end up paying more.

The aim must always be to pay as much as you can afford to creditors, and if this means that your IVA will be repaid earlier then this has definate advantages for you as well.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

This is an area of the IVA process that is a little bit grey and slightly unfair.
At present you pay 50% of your bonus into the IVA........fair enough.However, now that your bonus is incorporated into your salary you could potentially pay all of it into your IVA......unfair. You state that you are paying all your debt and fees,do you mean that you are offering a 100% dividend because if you are not then you may well have to just pay more into your IVA and return a higher dividend.[I wonder if Melanie can clarify this point ?]
If this is the case then you need to look at your expenditure and make sure that you allow for the increased petrol costs that you will have and revisit your utility costs etc etc.

[MelanieGiles]

Hi again

Just to clarify that point - an IVA will only be concluded early if a dividend of 100p in the £ is returned and all fees and costs (incurred to date) are also paid.

As Neverending says do make sure you fully provide for all increased expenditure at the annual review point. At that point in time you only have to convince the Supervisor and not the body of creditors, so they may be a little more lenient with you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk