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Hannah.gd

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Post by Hannah.gd » Wed Jun 15, 2016 10:59 am
Hi,

I have recently had a review which shows a reduction in income due to being on maternity leave.

Two days ago I attempted to discuss the issue with my IVA company, via one of the advisors who wasn't very helpful at all. Whilst on the phone I asked what my options were and was told a payment break and that's my only option, otherwise they have no idea how to help me.

I advised that a payment break is something I wish to avoid as it will only be added to the term of the IVA, so I would prefer to try and meet payments. The advisor then proceeded to adjust my expenditure breakdown, to try and evidence there wasn't a deficit and that it looked like I could afford a monthly repayment into the IVA. Currently as it stands I'm -£186 per month. I wasn't very comfortable with the advisor doing this, basically she was playing with the figures #128584;#128584;#128584; not comfortable with it one bit. I did ask about speaking to my IP and was told I couldn't and that is what they were there for!?!? I explained that myself and husband had been paying the IVA out of the monthly food allowance. I asked about a reduction in monthly payment and was advised they couldn't help with that either.

I also advised that I am returning to work on reduced hours, therefore would have a further reduction in income come September this year. This is why I didn't favour the payment break or fiddling the figures as I will be back in the same situation if not worse come September when returning to work.

As it was time wasn't on my side and I had to end the call to collect my daughter from school, but took the advisors name to call back. I called back and I left a message for her to return my call, which I am still waiting on.

Previously had advice via the forum and was advised options could be to ask they accept payments to date as F&F or offer a lump sum as F&F. I want to consider both options and was hoping someone could advise the best way to do this? Any template letters available for me to follow would be great and the likely hood of them being accepted? in terms of asking them to accept payments to date as F&F, what would happen if they say no? would the IVA fail?

I am now in the 3rd year of the IVA, currently paying £135.50 per month.

Advice needed and would be really appreciated.

Thanks
 
 

Foggy

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Post by Foggy » Wed Jun 15, 2016 11:22 am
Hi, might I ask who you are with ? It seems they are not very pro-active, which means you are going to have to be.

First check your proposal -- their is often a clause in there that allows the IP to reduce payments by up to 15% without the need to consult creditors. Flag this to your "advisor".

Then, if no reduction is forthcoming, the other options are for you to put together a full and final offer, if you have someone willing and able to gift you the lump sum -- this would be in the region of your monthly payment multiplied by the number of months remaining, plus 12 for equity. This can be drafted so that, if refused, the IVA carries on it's normal course. A template for the F&F offer was included by Lisa in this thread:

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=78770


Of course, as bitter a pill as it might be, the option of an extension could be reconsidered.

The final option would be to ask for a variation requesting the creditors accept payments to date as a full and final. The problem with this is you are stating that you cannot continue, so, if this is refused the IVA will fail.
Last edited by Foggy on Wed Jun 15, 2016 11:24 am, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Hannah.gd

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Post by Hannah.gd » Wed Jun 15, 2016 11:33 am
Thanks very much for your reply.

I'm with Harringron Brooks for my IVA.

Checked my proposal this morning and your right about the clause in reducing payments by and upto 15%.
 
 

Foggy

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Post by Foggy » Wed Jun 15, 2016 11:53 am
I would insist on speaking to the IP directly.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Lisa Thomas

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Post by Lisa Thomas » Thu Jun 16, 2016 9:49 am
Good advice above from Foggy. Ultimately you will have to put everything in writing to the IP either way but worth insisting on speaking to them - mention 'making a complaint complaint' and see where there gets you.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Hannah.gd

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Post by Hannah.gd » Mon Jun 27, 2016 12:57 pm
I've discussed further with the advisor and she sent the income and expenditure adjustments through to her superior for authorisation of a 15% reduction on the repayment amount.

they have come back to me today and refused this and questioned my husbands allowance for his own bills which equate to £630 per month. the advisor told me that her superior has said that my husband is only allowed a £270 allowance for his own bills?

I am in my 3rd year of the IVA with my annual review pending in July. this has not been picked up before now, I have not been made aware of this

we now need to provide evidence in the form of bank statements to justify my husbands bills. so I am back to square one. I have agreed to continue paying as I am, although the income and expenditure provided displays that I cannot afford to pay into the IVA at all.

I will have to go through it all again now when the annual review is requested.

I am not happy with how this is being dealt with, but do not want to rush my IVA failing. I want them to help me but seem to be getting no where. I have been told I cannot speak to the IP.

Following last years annual review, there were errors made as they made out they discovered additional income and increased my payments by more than double, because they had taken a gross income instead of net. I was pregnant at the time and the stress it put me under, I almost made a complaint then but had a lot to deal with then so I didn't pursue it. I really find the company inadequate, it worries me and gives me no confidence as they are dealing with my financial affairs!
 
 

Kirsty27

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Post by Kirsty27 » Mon Jun 27, 2016 1:20 pm
I have no advice Hannah, but my husbands IVA is with Harrington brooks and they are shocking. He never gets to speak with his IVA and they make mistakes left, right and centre. Good luck! This is the last thing you need to be worrying about.
 
 

Lisa Thomas

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Post by Lisa Thomas » Mon Jun 27, 2016 2:39 pm
Your husband doesn't have to disclose any of his income and expenditure to your IP however if he doesn't some firms will presume that you share the expenditure 50:50.

(This would only affect you if the split was different and you actually paid more than 50%).

what they might be doing is stripping out your husbands payments to his own creditors in order to establish what the general expenditure figure is and then dividing that by 50% to calculate your share.

Ask them to explain this in detail.

The problem might be that your husband can't afford to pay his own debts back (I presume he is not in an IVA?) and is effectively using your surplus income to pay his liabilities.

Difficult to know without more information so the above is just a guess.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Hannah.gd

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Post by Hannah.gd » Mon Jun 27, 2016 3:09 pm
thanks Lisa, although all of my husbands income and expenditure has already been included on the income and expenditure amendment I made when advising the IVA of a reduction in my income. They are now asking for evidence of the £630 my husband pays towards credit cards and loans. we have evidence of this so I am not worried, but they have not brought this up before now following precious financial reviews and are refusing to reduce my monthly contribution into the IVA by 15% as per proposal and agreement. the split is 50:50.

this is now going to delay a further few months until all paperwork and evidence is reviewed. I am struggling financially as it is. it is just very very frustrating when I am currently on maternity pay and struggling financially. I feel like they are basically saying I have enough money to pay into the IVA when I have explained that I haven't.

I'm not happy dealing with an advisor if I am honest.
 
 

Hannah.gd

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Post by Hannah.gd » Mon Jun 27, 2016 3:13 pm
just to confirm there isn't any surplus income from my income as I'm on a reduced income because of maternity pay. neither is there any surplus from my husbands
 
 

Lisa Thomas

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Post by Lisa Thomas » Mon Jun 27, 2016 4:06 pm
If you take your husbands debts out of the equation and deduct 50% of the total household expenditure from a) your income only and then do it again and deduct it b) from 50% of both your income does this leave a surplus?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Hannah.gd

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Post by Hannah.gd » Fri Jul 01, 2016 11:19 am
Thanks Lisa. Is this what you mean, see below:-

household exp 2,370
50% hh exp 1,185

my income p.m. 1094
husbands income p.m. 1133

my income minus 50% hh exp -91.00
50% joint income minus 50% hh exp -71.50
 
 

Lisa Thomas

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Post by Lisa Thomas » Fri Jul 01, 2016 12:14 pm
Hi Hannah


It would seem that however you calculate it there is no surplus net disposable income.

I am a bit concerned for your husband - as he has no net disposable income how is he paying his debts on top of this?

How long have you got left in the IVA and what are your current contributions set at?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Hannah.gd

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Post by Hannah.gd » Fri Jul 01, 2016 12:46 pm
sorry Lisa I didn't deduct my husbands debts as u suggested, see new calculations below:-

household exp 1,740
50% hh exp 870

my income p.m. 1094
husbands income p.m. 1133

my income minus 50% hh exp 224.00
50% joint income minus 50% hh exp 243.50

I'm also basing these figures on a household expenditure for one child. we've recently had an additional child.

some allowances given in our house expenditure are being sacrificed (I.e. food allowance, medical, optical, hobbies) and used towards the £135.50 p.m. for my contribution into the IVA and my husbands debts. IVA ends 2018 (5 years) or another year if we can't remortgage.

I can send u the full breakdown maybe?
Last edited by Hannah.gd on Fri Jul 01, 2016 12:53 pm, edited 1 time in total.
 
 

Lisa Thomas

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Post by Lisa Thomas » Fri Jul 01, 2016 2:35 pm
Hi Hannah

Based on those figures it does show that you have enough surplus to pay the contribution of £135.

You need to provide your IP with new/update expenditure to reflect the extra costs with the new baby.

It might be useful for your husband to do something about his debts - this may take the weight off a little. Has he taken any advice?

Do you have any 3rd party that might be willing to gift you a lump sum settlement of say £3k?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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