Hi. My husband and I have had our IVA for the past 2 years, and it has been going well. We have recently sent off our annual incomings/outgoings and they want us to pay over £700 in the next 10 days and have increased our monthly payments to almost double! My husband has an awful basic salary but can earn an okay bonus - he has been given a trial management position and has been earning an occasional higher monthly amount - but it is NOT guaranteed. One month he could bring home up to £400 less than the next, so although it is correct that we pay a bit more towards our IVA, we can't afford almost double! If he has a bad month when we pay this new amount, we won't be able to live. We are wondering if we would be better off declaring bancruptcy? Please help.
Hi -- fluctuating payments should not be included as regular disposable income ( the IVA payment ) exactly for the reasons you give -- it is unworkable.
BR might be workable, as you might only need to make payments for three years ( so, no longer in the grand scheme of things than if you stay in the IVA). However, under BR your home might be at risk, or any other assets of value -- do you own or rent ?
You should also check whether employers have anything against BR too.
If you are with Payplan, they take this stance regularly, so probably won't be talked round -- if you are with another firm it might be worth having a chat with them to try to explain the issues and get the figures reworked.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think you should start off by seeking a further review with your IP and not a caseworker to ensure they fully understand your husbands salary position. Your basic salary should be used for the basis of calculating your iva payment, with the normal clause around extra earnings if appropriate ...however this is just my opinion and your IP is in the right position to give specific case advice.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
In the first instance you need to know how your IP has calculated your husband's income, which appears to have given rise to the increase. It may be that they have misunderstood or misinterpreted the new basis of his salary, and if the rise is only temporary then it will need to be adjusted when he resumes his normal rate of pay.
If you cannot afford the new level of payments now, it is vital that you explain this to your IP and ask for them to be adjusted.