Just about to enter my 5th year of my iva. Never missed a payment. Evan though its my iva my husbands income is taken into account. My husband initially was very angry when he found out i was in trouble but has stood by me. We have been struggling fo a while financially as his hours were dropped at work. I was very lucky to change my job for a full time job with better money. Just filled in my review with my new wage and iam terrible scared that they will take every penny extra also i dont know what i am supposed to do in this final year. We do have a mortgage but if we do ger equity release will i be in debt for the next 20 years. Iam sick with worry again.
My IVA has increased with each wage increase, no matter how big or small. Your expenditure review details your outgoings and any money on top of this is paid into the IVA, so unless your outgoings have increased then you can expect all/most of your wage increase to be gobbled up by the IVA. Has the wage increase led to increased outgoings? e.g more fuel usage, meals at work, clothing etc? You could include an increase for these.
With regards to the equity question .... I have no experience as I'm only 3 years in, but I will have the same problem after year 5. I don't think I will have much equity (or be able to re-mortgage) so I should be extended into year 6.
The hardest part is telling a stranger about your problems ...... it's also the most important!
My husband has had wage increases most years, but when we worked out our surplus income at annual review time, the iva payments only ever increased by 50% of the increase otherwise there would be no incentive for us to better ourselves, if we knew we wouldnt be able to keep any of it! This is in my proposal too. Not sure if its the same for all companies though if Kravarran was not able to keep any. Might be worth digging out your proposal. I'm also not experienced when it comes to equity release, but I have also never heard of anyone being accepted for a remortgage anyway, so try not to worry too much. It has to be better after the end of the iva, and you're nearly there!
Last edited by Lou74 on Sun Jan 25, 2015 5:42 pm, edited 1 time in total.
Thanks. My husband has been so understanding but things are beginning to get quite tense as not sure what happens next. Almost ffel as bad has at the start. Not sleeping feel sick etc
Please read your original terms and conditions. I think the 50% clause is pretty standard and yours probably has it.
What it means is that any surplus above and beyond the original figure is only taken at 50%.
Therefore, if your original payment was £300 and you suddenly have an extra £200 spare cash a month, the IVA will take £100 of it.
Hope that makes sense!
As Lou said, the whole point is to encourage us to earn more. If the IVA took the lot, we'd never try to better ourselves or find cheaper electricity and car insurance etc...
The IP company cannot take your husband's surplus cash [although some will try]. In addition he does not have to agree to equity release now if he did not agree at the start of the IVA so if there is equity and extension is likely.
