Hello I am in an IVA not sure if the time is right but I am employed in the Armed Forces. And I have just recieved a rather good pay rise, I feel a bit out of place saying it like this knowing that many people who don't have my security may not be in the same position as me. But my question is on just doing a budget summary with the new figure I am able to pay back into my IVA at an higher rate that what I am paying now. I know I have to contact my supervisor to let them know this but do I improve on family life at the moment i.e upgrade for example my cable service from the very basic level to a more better level. When the only reason why I had a basic level before was because I never had enough surplus cash to have it before. This is an example I have many other costs that I could increase but when I went into the IVA i took a hit and degraded some of our stuff so that I could pay a reasonable amount back to the creditors Or do I just keep my budget summary sheet the way it is and pay my extra money into the IVA which will be approx £300 - £350 on top of what I pay now.
I am afraid that the spirit of being in an IVA is to pay as much as you can/are required to under the terms of the arrangement - so take advice from your supervisor as to what you need to do. A lot of more recent proposals will allow you to keep 50% of your additional earnings, so you can use your share to pay for the personal things that you have mentioned.
Sky TV is hardly an essential area of expenditure, and many families manage very well without it, but you should be allowed to keep something as a reward for working hard and progressing your career - which creditors will ultimately benefit from.
Hi
There are standard allowances for satellite etc so you will not be able to justify an upgrade.
You may be able to raise some other expenses though if you can genuinely argue that they are insufficient, however, on the whole, your extra income will have to go into your IVA.
Regards
Have a chat with your Supervisor (IP) and see whether he/she will allow you with an additional allowance for the Sat TV if you can justify a reason. Anyway the first 10% of your gross existing income is yours to keep but the balance has to be split %0% into your IVA pot.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
will speak with my supervisor, my main reason for bringing this up is that I have a concern that the IVA will fail because.
1. I will be able to pay more into the IVA which is more a less give or take a £100 the same as I were paying creditors before I went into the IVA.
2. I will benefit from this pay rise for 18 months as I will leave the Armed Forces after 22 years, my supervisor has already told me that my lump sum payment/pension I get will have to go towards the IVA. [ i.e I WILL HAVE TO MAKE A CONTRIBUTION FROM THE LUMP SUM TO THE CREDITORS AS THEY CLASS AS A WINDFALL IN THE HOPE THAT THEY WILL WRITE OF THE DEBT EARLY] and if they don't except it I will still be required to pay into the IVA which my main source of income will be my monthly pension. Because i don't think in the Market we are in now I am going to get a job straight off that will pay me 33k therefore after 18 months I think I will be worse off.
But the benefit from this forum is it good to talk and get good answers - I will keep ypu updated and let you know how I get on.
Will
Last edited by willwilliams on Tue Apr 21, 2009 9:19 am, edited 1 time in total.
A shame that your IP did not seek to exclude the resettlement package from being a windfall.
I know only too well how difficult it is to settle at the end of 22 (ex-forces myself and married to a 22 year man). That money is needed to rehome your family, and to help you to find another career - and the pension will be minimal until you reach the age of 55, and certainly not enough to live on.
It may be possible to negotiate a lower sum from the gratuity, if you can justify a need to retain money - for instance for a deposit on a house or training course, so don't just assume you will be required to hand the whole lot over.
Melanie thankyou but as you previously said I am in IVA and any extra income should go to my creditors. However there is an option to go bankrupt, a senior colleague I work with has indicated that it is the Commanding Officers discretion whether I should be discharged from the Armed Forces if I do go down the Bankruptcy road.
The Commanding Officer is aware of my situation and early indications say he that he will not discharge me if I have to go down this route. Obviously this is a last resort but something worth considering if I get no joy with my supervisor.
A question I would like an answer to is the IVA is a recognised scheme, why don't you all use the same codes of practice?
When speaking with my supervisor I mention that I have discussed this on the forum and various people have provided possible solutions. On one of your solutions, you mention about keeping 50% of my extra income. First impressions from my supervisor when I mentioned this was somewhat a negative reponse.
I tend to class a retirement package in a different light to additional income - but of course you should be striving to pay as much to your creditors as you can.
HMF these days are far more sympathetic to financial difficulties, but under Queens Regs you still have duty to advice your CO if you are made bankrupt, and officers still have the discretion to set an allotment out of their soldier's salaries to pay debts!! A scary thought - and in my experience rarely seen, but I have seen it!
You have to remember that an IVA is an individual contract between you and your creditors tailored to suit your circumstances. Not one proposal is the same as another, and you will find inconsistence amongst IP firms and creditor modifications, although this is now largely being addressed with the use of the IVA protocol. If your IVA is an older version, the protocol would not have been around when it was put forward, and even now your own IP may not have signed up to it.
Your supervisor has to supervise the IVA in line with the terms under which it was written, and there is little discretion allowed, which is why it is important to get the thing right in the first place.
In ensight I wished I shopped around and went with your company having been ex forces yourself and understands how the system works is a great asset. But at the time when I were struggling with Debt I had no idea what an IVA was.
An advert in the monthly Soldier Magazine inspired me to contact them and because they were in the magazine I felt they would be legitimate and understand the Army System, but I was wrong. I wish I could transfer my IVA to another company.
The Commanding Officer is aware of my situation as I had breakdown over the debt and other problems, and now on the At Risk Register and Physciatric assessment as I were mentioning some unusual things. However, I must say that things have calmed down and I seem clearer in my mind.
Thankyou for taking the time to give honest, reliable answers.
My advice is to speak to your IP and suggest variations in respect of your re-settlement package and your current contribution in respect of salary rise.
Incidently what was your original offer, as amended by any modifications that creditors are expoecting from you? How long has your IVA been running? Lastly who is your IP?
Last edited by David Mond on Thu Apr 23, 2009 6:36 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Will, I am sorry to hear about all your problems, and I hope you manage to sort any variations out with your lump sum and your pay rise.
Let us know how you get on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I can guess who your IP firm is from the place you saw them advertising. If you want to e-mail be directly about any advice with regard to your settlement, I would be very happy to help out. I know the firm very well, and would be happy to speak to your IP if you felt that would help - alternatively one of their Senior Managers is a really good friend.
Melanie thankyou for your kind offer, I will see how I get on with my IP I have asked for a new supervisor and now deal directly with the manager of the supervision department.
David my IVA has been running for almost 2 years, I haven't made an offer just yet and I don't want to mention my IP. At the moment my budget sheet is with the supervision department with no ammendments to my expense except the new figures.
Thankyou everyone for your input I will keep you posted on the progress.
willwilliams - I understand - but Mel will be your best bet to help out if you have any problems. Good luck and let us know how you get on.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Just thought I would keep you upto date, I have agreed with my supervisor to increase my payments by an addittional £150. I still keep some of my pay rise.
