www.iva.co.uk

Hi there,

Could do with a little help - I do love this forum! Due having had a baby, a promotion and both of us a payrise we will need soon to do a complete review of our circumstances. I have a couple of questions:

1. we have been told that we will be able to keep 50% of my payrise (due to promotion at work) but our costs have gone up due to childcare - do you think these childcare costs will be taken into account first or will my share of the payrise be expected to be used to cover that? I am pretty sure my IP said it was 50% after new costing but cant be certain.

2. I know that it is what you actually spend that matters but as a guide can you tell me if the suggestions below seem reasonable. All per month

From 327 to 400 for shopping (nappies and formula milk)
From 25 to 40 for clothing (I buy all her clothes second hand, except the odd treat, but this month alone it has cost me 28 pounds so I am hoping this is not unreasonable - she is growing so quickly)


We only have a 27 allowance for hobbies and entertainment (in reality we earn bonuses and our share gives us a little more) - what could I put for 2 adults and a baby?

Also the payrise is probably considerable and if we wanted could we save up our 50% and pay the IVA off early (we should already complete early as we are very likely to hit 100p in the pound but I mean even earlier?)

Thanks in advance for your help - I will of course discuss also with my IP but just wanted any thoughts?

Ben

First of all congratulations on the baby, promotion and pay rises. I am sure you have had worse years!

You are right that your payments are normally increased by 50% of the surplus after allowing for increased costs of living although just double check your own proposal. The guidelines for a family of three are;
1. Housekeeping £423. I would argue that nappies and formula are a separate allowance of £46 per month which will then become school meals and trips when the baby reaches four.
2. Clothing £68. My wife and I have a daughter aged three who costs more than that herself and her last pair of shoes were £50 alone. These will last no more than 4-6 months whereas I will be buried in my wedding shoes!
3. Sports and hobbies £34, miscellaneous £34 and each child is allowed £8 for a phone and £11 pocket money. This may not be an issue just yet.

Finally you can use your share of bonuses etc to clear the IVA but try not to put yourself under too much pressure. Your creditors will be paid in full which is an excellent achievement in itself.

Thank you so much Michael for the excellent advice, my other half has told me she already called the IVA company and discussed some of this.

It has been a good year - we can't complain! The pay rises etc have just come at the best possible time what with the baby to buy for, they are even more expensive than we anticipated :0)

I am pleased to see the clothing allowance can be a bit more - thats the big cost for her at the minute.

Again excellent help and advice on the forum!!!

Sometimes creditors will modify the terms to say they want an uplift based on 50% of net income, in which case the additional costs would need to be covered entirely from your share. An unreasonable requirement in my opinion as it does not allow for increased costs of living or changes in circumstances. Thankfully we do not see this one too ofte4n these days.