Annual Review decrease in earnings

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Enjoyingthesmallthings

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Post by Enjoyingthesmallthings » Wed Sep 28, 2016 9:53 pm
I'm coming up to the end of my IVA's first year and been sent the I&E to complete. Because I'm self employed my figures change from month to month. However they have asked for my self assessment from last year, this years books to date and three months worth of bank statements. Looking at my average wage it has decreased by £90 per month this financial year, however I am ok with the payments I make at the moment, I am taking them out of my other allowances, eg...car, hairdressers, entertainment, medical. Over the last 10 months the car has behaved (touch wood) and I've not had too many illnesses, but who's to say this will continue.

Will my IP look to decrease my payment contribution in line with my monthly average or are they happy to keep them as they are? I'm OK with it at present.
 
 

Foggy

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Post by Foggy » Wed Sep 28, 2016 10:05 pm
There is usually a clause allowing the IP to reduce by up to 15% without needing to consult with creditors, any more would need a variation meeting. It is worth discussing with your IP so as not to put too much of a strain on your finances going forward.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Enjoyingthesmallthings

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Post by Enjoyingthesmallthings » Wed Sep 28, 2016 10:10 pm
Thanks Foggy, I am aware of the 15% reduction, but I don't want to do this unless completely necessary. I'm Ok at the moment, so will my IP force me to reduce payments inline with my income?
 
 

Michael Peoples

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Post by Michael Peoples » Thu Sep 29, 2016 8:58 am
Your IVA payments would have been set based on projections and your IP should really then only need to look at your annual accounts to compare these figures. If you are maintaining these payments in line with the projections and cash flow then there is no reason for the IP to have any concerns.

However if your accounts show lower profits than projected your IP may ask how you can afford the IVA and this is often explained by increased tax credits or lower profits due to non cash items such as depreciation.

Monthly accounts are meaningless especially when a business is seasonal so I cannot understand why your IP wants all this information.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Enjoyingthesmallthings

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Post by Enjoyingthesmallthings » Thu Sep 29, 2016 11:20 am
That explains it really well, thank you Michael.
 
 

Michael Peoples

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Post by Michael Peoples » Thu Sep 29, 2016 11:44 am
Pleasure. I hope it helps and your IP just does the review as normal.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

plasticdaft

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Post by plasticdaft » Thu Sep 29, 2016 12:25 pm
I think if you are managing the payments then all is well.

Best of luck.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
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