Hi
I am in doubt
My net income from my employer is 260£ (since I have started IVA and it has not changed). This income was reduced by 30£ from my net income, as my credit union took these 30£ for a loan repayment. So my net income on my payslip was 230£ on first day of IVA. The credit union is on my list as creditors and these 30£ is now added to my net income. So my net income is again 260£. I rang to my IP and asked, what amount do they calculate to my annual review. I have been told the amount is 230£ and everything more than 253£ is an additional income (230+10% = 253£). Hold on, it means I am already on additional income? What if I belong to other credit union and will ask them to do 60£ reduction from my net income into saving account? It means I will be have 200£ net income and then I am able to do some overtime to make up 253£ (or more,I know about 50/50 rule)? So what do we need to provide P60 for? And what kind of documents (if any) I need to show to confirm my expenditure?
Welcome Arek ... apologies if I have misunderstood.
If you are in a an iva savings are allowed from your allowances ... however I would question if your I&E has been set correctly if you can afford £60 a month into a credit union saving account.
Who is your iva with - which provider ?
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
From what you say you are correct and your IP is wrong. This is probably easily resolved but may depend on what income was used in the original I&E. The correct figure would be £260 as the credit union deduction would be ignored but if the IP used £230 then there is a flaw in the proposal.
Thanks luluj and Michael.
Mine I&E shows income £996 on monthly basis. But I get paid weekly. A Year has got 52 weeks so I could not understand how to calculate everything. I have been told, that my income is set on £230/week. So my figures in the original I&E are not set right, because:
my net income from employer= £260/weekly
260 multiply by 52weeks = £13520
13520 divide by 12months = £1126
my net income from employer after credit union deduction was £230/weekly
230 multiply by 52weeks = £1196
1196 divide by 12months = £996
Is that correct?
Last edited by Arek on Fri Oct 17, 2014 3:09 pm, edited 1 time in total.
It seems to me that the I&E figure is wrong. It should have been calculated using the figure £1126 per month or £260 x 52 divided by 12. Your original surplus income seems to be understated by the £30 credit union deduction so while the overtime should be calculated on 10% of the £260, your surplus shopuld have been calculated on an income of £260 per week and not £230. Effcetively you seem to be underpaying your IVA by £130 per month.
I think in the same way, the figure should be £1126 per month, not £996. All deductions are clearly indicated on my payslips.
I see I underpaying my IVA now, but at my first anniversary I will be have to pay all my surplus divided by two from everything over £253.
What is the best to do in this situation? Is there any chance to change these figures if I am already on IVA? If I changed my income I understand that I can change my expenditure as well…
I think the current way has worked in your favour but at review time get the expenses increased based on the new I&E. This will sort things out going forward but be interesting to see if the IP notices their mistake and looks for the money.
I do not want open a new topic, as the next case is linked to the same credit union.
Since I have started IVA, the credit union still deducted money as loan repayment. By the law, they must not do it. Who is responsible to stop these deductions and how to get payback?
Your IP should demand the money back from the credit union and it would be paid into the IVA. This would make up for any shortfall in payments to the IVA.
