www.iva.co.uk

When I entered into my IVA in June this year I was receiving certain tax credits and child benefits which counted towards my income. My daughter decided to move in with her dad during the summer and so therefore all payments regarding tax credits, maintenance, child allowance were subsequently stopped. I have managed to keep my payments up to date without too much trouble as a friend has moved in to share the rent and bills etc. I am paying back 20p in the pound and my monthly iva payment is £185.00. There is a clause in my iva agreement that 50% of any significent pay rise will have to go towards increasing my monthly payment and any overtime has to be declared. I do not do any overtime but I do get a pay rise of about 4% every year. Do I need to tell my supervisor of my change of circumstances even if I have slightly less money than before as I am worried the IVA will fail if my supervisor sees the reduction in my income due to the loss of tax credits etc. I think I am allowed to reduce my iva payments by 10% but no more and wondered if you could advise the best way forward. I can only just afford the IVA but if I don''''t tell the supervisor about my change in circumstances I expect my pay rise will be taken into consideration and my payments will increase. I am really wondering whether my iva payment will increase regardless of the fact that my income has dropped. Is this the way the supervisor will look upon my case do you think?. Many thanks.

Hi there and welcome to the forum

You will need to keep your supervisor informed of all changes of circumstances as and when they occur - including pay rises. The supervisor will then likely review your financial situation as part of their annual review, at which time you will be advised whether they feel that your payments should increase. Given that you have a 50% uplift clause, it may be that your payments need to be adjusted earlier, but again the IP will advise you of this.

A sympathetic supervisor will take into account the loss of your other income in reviewing your current situation.

I concur with Melanie and the 50% rule presumably is written into your original proposal. I would complete an uptodate I&E and send this to your Supervisor (IP) explaining your changed circumstances. I believe your IVA will not need to fail and can be adjusted/varied accordingly. Good luck and let us know how you get on.