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Hi, I would like to know if when being considered for an IVA if child maintenance money is calculated as income? I thought child support money would be protected as it is paid from an ex partner with the sole intention of being used on the children from that relationship. If the ex partner discovered this money was being calculated as income in an IVA and that in fact was ot being used to soley care for the children then he would in effect have some legal right to take action as why pay maintenance if it is not in actual fact going to make his children any more better off?
Tracy.
ps I have signed up for the forum and just waiting to be approved.

Hi tg and welcome to the forum

Yes your child maintenance is included as income, as your household expenditure will also include provision for the children's expenditure in terms of food, clothing and educational expenses.

I don't think your partner's argument would have any substance, and he does not need to know about your IVA in any case. Child maintenance payments are set as a percentage of the father's income depending upon the number of children, and have no relevance to what the money is actually spent on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi t.g
All income is taken in consideration,you just off set it with the expenditure that it relates to,so in reality they just cancel each other out.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

Hi!
Thanks for your reply. I have another question related to the same thing. The IVA is actually for my husband not for me as the debts are in his name not mine. How much will my income be taken into account for my husbands IVA and will the child maintenace and other benefits paid to me be counted as my income?
Thanks in advance [:)]

The other experts are spot on. The Child Maintenance money would be calculated in your total household income and then could be offset by all the expenditure needed for the child like money for food, clothes, school travel etc...



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

To get an IVA through, your IP will probably want your incomes to be combined and expenditure combined to give a "true" reflection of the household budget. This is the case even where it is only your husband going for an IVA. You could, of course, refuse this and say he should standalone but then his creditors could refuse his IVA. Really when you are going for an IVA it is easier for an IP to give full disclosure. In reality some of the debts incurred by your husband, whilst legally in his name alone, will have gone on the household. If you are desperate for an IVA to be approved it is best to do a joint income/expenditure form even though it is just your hubby going for the IVA. Doing this gets his creditors onside, not doing this might get their backs up.

It is usual for the creditors to want a joint income and expenditure budget for both you and your Husband in order to calculate your household's disposable income. However, as IVAs are individual in nature it is possible to work a seperate budget if there are mitigating circumstances. I would reccomend that you discuss this futher with a number of professional companies.

Thanks again, I understand. Does the same rules apply to a debt management plan does anyone know? We will be speaking to an advisor soon.
cheers

The same rules ought to apply to Debt Management Programmes, but the cynic in me rather suspects that it does not. Check with a specilist Debt Mangement Company to be sure.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk