I am 2 years into an iva with my husband, currently paying £1100 per month between us. We are thinking if having a second child. We currently have £250 allocated to childcare for my sons school club (before/after school). If we had a second child, would the IP allow our childcare to go up to about £800 per month as I'd be going back to work full time? Or is there a cap on childcare costs on an iva like there is with some other Iva expenditures?
I'd think with that level of variation it would have to go to a creditors meeting (I think IPs can vary expected dividend by only ~10%, without going to creditors)
I don't think there is a cap, the costs have to be seen by creditors as reasonable and necessary to maximize their returns
Hi all, thank you for your replies. I can understand if it incfeases that much then a meeting would need to be held. I guess, my thoughts at the moment are: IF and (and a big IF on my part at the moment) we did try for another child, would my IP have a cap on childcare costs.
If we went for it and there was no cap, and our costs went up, but that was taken into consideration fully in our I&E, then technically we would be no worse off than we are now paying the £1000,00 per months to the IVA payments. I would guess. If that was the case, then we could afford the payments. Of course we would have an increase in food and things like nappies/clothes, but would work to keep that as a minimum so as to not affect our abilities to pay the IVA committed payments.
Your IP is not there to prevent you from living the lives you want to Helen, we are there to help you react to the changes that lives bring, and to ensure that your IVA payments can remain affordable.
No-one can guarantee the outcome of a variation meeting to accept reduced disposable income as a result of an extra mouth to fee - but I can tell you that I have never had one rejected in the last 15 years.