www.iva.co.uk

Ok so this is long but please please help as I am really worried. I have just spoken to an advisor on the phone (who is not my usual relationship manager but I have been unable to contact him - he is usually excellent so I can only assume he has been busy). I left the conversation really confused, the woman was great but I am just really worried.

So I will round up figures etc. for ease.

We have been in IVA for about a year and a half. When we started we had IVA payments of 590 (this has never changed) and my earnings (salary) were 1600

Then I fell pregnant and went on maternity leave - during this time my salary was much less and (I think at the annual review stage but uncertain) my income was showing at 1250 but as I was not at work our costs also went down (travel, meals at work) so a new IE was done to show the lower income and lower expenditure.

Then the week I went back to work I interviewed for and got a promotion which meant £400 more per month.However we have now childcare costs.

I sent a new I and E reflecting these changes to FJ.

Our car has broken and we need to budget for a new one so I called to ask if our payments will increase but I am told this wont be done until next review. So currently on file my wages are 1255 and any extra treated as additional income and that figure will not be allowed to be changed until March (when annual review time) but I am so worried because that figure is not what I am earning and I have had the promtion.

When they do the annual review or the additional income review (which is done 6 monthly) will they backdate my increased costs i.e. costs for travel and meals at work now I am back and the new issue of childcare? before asking for additional funds? And why can they not change my I and E in line with my current circumstances?

Currenly I earn 800 more per month than our allowed income, if I had to give 400 of that that is ALL of the extra money from my promotion. I am so so confused, I could cry - the woman did her best to explain but I don't understand why I have been asked to do an I and E reflecting our current circumstances if nothing will change until March! I don't know how much to save to one side because our current I and E is innaccurate.

Sorry for the long post I could just cry!

The main thing is I do not know how much money to put in a bank account to as part of their 50% of my extra money when I do not know if what we have put down as expenditure will be agreed until March.

Hi Benny - think I understand!!

Pay increases are effective from the next review (normally). Take a look at the proposal and see if this is what it says. If it isn't overtime or bonus then until the next review it's yours to keep and will be effective only from the review date, so no arrears due from you.

To confirm this I would ask them to put this in writing, but this is what happened with our pay increases.

No I have already been told that my increase will count as additional income - the increase looks like 800 because my income was lowered but that isnt our true additional when we have had increased costs and the previous costs like travel that were taken off have since gone back on x

But it is a pay increase isn't it?

You really need to look at the proposal and if it states any pay increases are effective from the next review then they are ignored until then.

so anything over 1255 (which was my wage on maternity leave is additional funds but i also had lower costs then which went back on as soon as i went back to work - will this be considered when deciding how much extra i owe

That is not what they have suggested to me on the phone today - I am really upset here, are there freeman jones advisors on here that could look at this? x

I haven't seen anyone post from FJ here for a while.

What does your original paperwork say about pay increases?

I am not sure I will have to have a look x

it does say 50 / 50 rule x

Yes but does it say when pay increases will take effect from? It should differentiate between overtime/bonuses and pay increases.

Hi! But according to your post you continued to pay 590 even though you wage decreased when on mat leave! Therefore surely you have been paying above the odds anyway and if you have 400 increase due to promotion then you will only have to offer 200 more if expenditure remains the same?!! If child are costs increase then you may find you can continue with 590!

Hi Benny

I'm with Freeman's jones too , I have made 48 payments with 12 more to go , the dealing I have had with them is that any money you have had over your allowance and the 10% increase , 50% is to be paid to fj , I have had numerous dealings with them and they will only look at this at each review stage . I did send in i&e and they say that this will be looked at in the review .

Sorry if its not what you want to hear but I would suggest you made it clear regarding your i&e , if you get get as many receipts together and send these off , i&e for your car , this will help with the difference you owe .

Hope this makes since .

Good luck x

Whilst you can't expect the IP to review a fluctuation in your I & E on a monthly basis, if your circumstance have changed then you need to bring this to their attention!

If your income has increased but also your expenditure has increased by the same amount then there should be no increase in your monthly payments. As long as you can demonstrate these increases.

Keep a diary of your Ingoings and out goings, this may come in handy at your next review.

This post relates to additional money from a payrise and is thus not part of the calculaton of uplift under the 10%/50/50 ruling. If the IP concerned is happy to leave this until the anniversary to review and adjust, then this is their call and you benefit from the additional money until that time - but I would get it in writing from them to be sure you will get no nasty and unexpected suprises at the time of the review.