Will child benefit be seen as extra income and taken from me towards monthly payments ?

[Tayyaba]

If I am on an iva agreement and start getting child benefit for my baby, will that be seen as an extra income and taken from me to put towards monthly payments?

[Foggy]

Hi. Yes, it will be treated as income and, if surplus, will form part of your disposable income and, hence, payments.

However, with babies come expenses and your allowances will need to be amended to reflect this and will probably negate the benefit paid.

[kazzafunk]

Agree with foggy - make sure everything you spend for the young ones gets put down on your expenditure sheet.

[Radish]

Family working tax credits are also payable into an IVA if you work/resume work. Not sure how much, probably not all of it.

[Michael Peoples]

If you have a major change in circumstances it is best to have a complete file review. Child benefit and tax credits would rarely cover the allowances for a new child never mind the actual cost so I would doubt if the payments would go up. I would think a reduction is more likely when new children come along.