www.iva.co.uk

Hi all,

I have a Student Loan and every year I defer payments because I do not earn enough.

This year however, due to bonuses, 2 of the 3 payslips to send as evidence of not earning enough take me over the threshold. I am quite concerned that I will now have to start paying this loan with money I don't have. I have contacted my IP but was wondering if anyone can offer any advice or knows what happens in these circumstances.

Many thanks

Hi, nice to see you.

I'm afraid if your earnings go over the threshold then you will have to start paying the loan.

If this is going to cause hardship then hopefully your IP will be able to help you - you may be able to get a reduction on your IVA payments.

Let us know how you get on.

Thank you for your quick response.

My other problem is that due to underpayment of tax (I do not fill out a tax return but rely on my employer...but that's another story) my pay is to be reduced in April as HMRC will be taking through my tax code. If my IVA payments have to be reduced dramatically to cover the student loan is it possible it is likely to fail because I am unable to make a decent contribution into the IVA?

Again, this is something to take up with your IP - it may be that you have to have a variation meeting to sort out some lower payments. The IP can lower them by up to 15% but anything over that has to go back to the creditors.

I think a lot of people will have to be going for that in the next few months - myself included possibly.

Let us know what your IP says.

Thanks.

Enjoy the rest of your weekend [:)]

You too - hope it works out ok for you.

I know how you feel...I had a dinky payrise of about £20pm that took me £8pm over the threshold and I started paying back my student loans at £150pm. Just one of the things that tipped me into the iva! But now I'm nearly finished paying them...I think they finish about a month or two before my iva does...yay. So it's worth it to get them off your back x

Call student loans too. I'd have thought that there is a chance that, with proof from your employer, you could continue to defer.