www.iva.co.uk

Hi to all, my husband and I are in the process of applying for our IVA with Payplan. We have both declared our payslips I&E etc, but what bothers me is i know we are both due our annual pay increases sometime soon. Lets say the IVA is accepted in October and we get rises in Novemeber, when we get to have our yearly review will they look back over year one, see we had more income than when we started and make us pay back the extra that wasnt accounted for? Or will it be that year 2 will be amended according to the new salaries? Also, once the IVA is in place, whats to stop them demanding over and above what you can afford to pay in years 2-5? We will be expected to sign up on the amount decided in year one, but once that paperwork is signed we will be bound to whatever they tell us to pay after that? I feel like I'm forever going to worry what the next year will bring. Is anyone else out there using Payplan and how are you finding them?

If your payrise is only going to be cost of living there is nothing to worry about as the increase will be used to fund basic living expenses, If the increase is substantial and you know how much it will be it can be factored into the payments at the start.

Your payments should never increase to what you cannot afford or the IVA will fail. This will benefit no one as creditors will not be paid, nor will the IP and you will be bankrupt or back to square one. Provided the payments are affordable at the beginning you should be fine.

We are with Payplan. I had a backdated payrise in Feb this year, and hubby had a rise on his pension. We were allowed to keep the backpay and we have not had our payments raised at all so far.

I'm also with Payplan, my proposals were agreed today they were very supportive all the way along.
I'm hoping they'll be as good over the next five years.
I asked them about salary increases and I think they said I would have to send in wage slips every three months and pay a percentage of the extra income into the IVA. I'm waiting for confimration of this. They also said that at the 12 months review they would see if the monthly payments needed to be increased, but that increased cost of living would also be taken into account.

If your IP uses the IVA protocol, you will only have to pay over 50% of any increase in disposable income as a result of the annual review. Difficult to say this is unfair really.

So Melanie, let me get this right, if your diposable income has gone up at annual review, after you have done an income and expenditure form you would only have to pay over 50% of any extra disposable income or have i read it wrong

That's correct - so long as you have these specific terms as part of your own IVA. As ever - the answer lies in the documentation.

So if my IP uses the IVA protocol i will have these terms i presume. Gosh I was expecting to pay all of it over as I am undergoing a review at the moment and our disposable income has gone up quite significantly. Thanks Melanie I would not have known. I will dig my paperwork out to peruse again!

You should do - but it would be best to check first. Which firm are you using? And are you already in an IVA?

I am with Freeman Jones and this will be my first annual review although we had one at six months. My husband has started working which we declared straight away and this income was set at the six month point, We were originally paying £326 per month but our income and expenditure is now showing a disposable income of around £900

Then you do need to check the terms of your own IVA, as you may well have to pay all of the money across if this is what your documents dictate.