I currently have an IVA agreement that i pay, but at the time it was set up taking into consideration my partners income because i was not earning enough to make the contribution. i am about to start a new job which will increase my income significantly.
Should i inform them that I no longer need my partners help so that they can base my disposable income just on mine. Because I am worried that i could end up starting to pay back an extremely high amount.
Also is there anyway they can know if you get a new job without you informing them?
You should always tell your IP about a change in circumstance, in this case a new job, as they will pick up your additional income from bank statements, payslips and P60's that you have to send in.
If you fail to declare that you are working and have additional income then you could be in breach of your IVA and it could therefore fail due to non disclosure of funds that should be paid over to creditors.
Depending on who your IP is and your report terms, they may well still review and include your partners income as it has been the source of income you have been using to support your iva payments, so best to give them a call to check before arrears and red letters come through from them.
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
Check your terms as you many only need to pay half of any additional surplus in income.
What I do feel may help is not thinking that paying back more is a bad thing! In my case, we took the money fully intending to pay everything and interest back but ended up in a situation where we couldn't. Creditors agreed to write off anything we couldn't afford to pay within 5 years and we agreed to pay everything we could. I felt proud that we could pay extra when we could. I do believe that a positive attitude contributes a lot to the success of an IVA.
The worrying thing is that this was set up knowing it was only viable if your partner contributed.
That may set a difficult situation for you and you need to be really careful that contributions do not improve dramatically.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
A new income and expenditure is required ... a new job will come with new costs no doubt ie increased travel to work; lunches; car parking; increased childcare maybe etc etc ... ensure you factor all in ....
We all enter the iva wanting to pay back as much as possible do increased earnings will support that ... the new job will be worth it in the end when your iva finishes
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I agree that a new I&E is appropriate and from here on the IVA should only be based on your surplus income and not your partner's. We do have IVAs that are supported by partners or family members but we always write into the proposals that this help will decline and ultimately cease as and when the client's personal circumstances improve.
Recommend you notify them in accordance with your terms. If you don't it will come to light anyway when they do your next I&E review and you could therefore have a backlog of arrears due to the anticipated increase that will become payable...
The purpose of an IVA is to pay as much as you possibly can for a 5 or 6 year period, and only at the end of that term, are any monies written off. I you fail to inform you IP of your change of circumstances, then you breach your IVA and it could fail, putting you back to square one. Openness and honesty is the best way to a successful IVA.
