www.iva.co.uk

I'm due to get a pay increase of 5k, I like the idea of having extra money for myself and don't want to feel like I'm being forced into giving out 50% of what i'm making.

I guess what i'm asking is, do i have to pay extra off my iva? i'm paying 100 a month over 5 years currently

I`m afraid that`s the rule Cherean. At the end of the day you still owe them the full amount of your debt.

I am sure that you would like to retain all of the benefits of your hard work, however when you have creditors whom you have agreed to repay via an IVA you will need to honour the commitment you made to them at the outset.

How much do you actually owe to your creditors, and what do you feel your new level of disposable income will be once you have received your increased salary?

It depends on your proposal and the exact wording but a £5k payrise should equate to about £280 net extra per month. You will do a review and if you expenses have risen by say £100 per month since the last review your payments will increase by 50% of the rest i.e. £90.

If you have incurred additional costs as a result of the promotion and need a higher clothing allowance for example, point this out to your IP. You will probably have to increase your payments but you will also benefit which is fair to all concerned.

Woah thanks for the replies,

My rent has increased by 25 a month, my council tax by around 30 & my phone bill with added work calls around 40 a month. I buy second hand clothes which given my promotion I can’t keep doing as I need to look smart. My clothing allowance is only 20.00 at the moment.

Besides that, my furniture is falling apart my bed is currently held together by tape and I had to get an credit agreement out for a sofa and chair as the legs on my old ones we’re falling off. I currently pay 123 on that monthly, so the extra money when not paying for better food, clothes and furniture I actually really need. I could at a push pay 150 a month,

Not really 100% sure what to do really,

Does your ip know about the credit agreement for your sofa?

Not the new person I'm dealing with but we're due to do our yearly review soon.

I had mentioned it to the original person i dealt with and he said it was fine, as long as the value doesn't go over 500

Hi cherean,

I'm coming up to annual review time as well. Sounds like you have not reviewed your expenditure properly in a little while.

Google and download the 'Stepchange Budget Guidelines Report 2012' for the latest allowances. (Guideline clothing allowance is £25-£34 now for example).

It sounds like you are really restricting yourself at the moment.

See if you can increase your expenditure to match your net payrise.

Best of luck.

Who is the iva run by and how long have you got left on it?

Paul

thanks everyone for the feedback.

My IVA is run by pay plan plus it's for 5 years currently coming to the end of my first year.

Been reading up over the last few days and someone mentioned as my total debt is just under 10 thousand that i should move to a debt management plan?

As I’d have more flexibility with my money

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Cherean.7

thanks everyone for the feedback.

My IVA is run by pay plan plus it's for 5 years currently coming to the end of my first year.

Been reading up over the last few days and someone mentioned as my total debt is just under 10 thousand that i should move to a debt management plan?

As I’d have more flexibility with my money

Whether a DMP is better would depend on a number of factors we are not privvy to. I am sure Payplan would have discussed this with you at the start as they are DMP experts.

Yes, you will have more flexibility -- but so would the creditors. You are currently paying £100 per month -- if ( IF ) all interest and late payment charges were frozen until the bitter end a DMP would take you just over 8 years to finish.

Ah i see thank you for the reply, during my inital call with Payplan only two options we're covered an IVA or Bankruptcy.

I do want the option to have more of my money per month. I've been paying 120 a month for the last few so i'll tally my ins/outs again.

I guess you have to weigh up whether you want to continue for the next 4 years in your iva and continue to pay across all your disposable income knowing you have full creditor protection, or double that to at least 8 years, possibly more if your creditors won't freeze interest (why should they when they have already done it for you in an iva that failed?) plus threats of ccj's etc but at least you can then pay them what you want ( unless you are taken to court)

I can't really understand why after only a year in an iva you are now no longer happy to continue paying what you agreed to pay only a few months ago?

You should also factor in the very real possibility that, once the IVA fails, your creditors will jump at the chance to add in lost interest and late payment charges, before agreeing the balance to be included in a DMP -- which could make that £10 a fair chunk larger.

As I’ve said it’s not that I’m unhappy with paying money out, my promotion has an effect on my IVA given that now I’m expected to by suits, a laptop and fly to our offices around the world I need the extra money for those reasons.

it's not a case of me being unhappy or wanting to default on my IVA i'm actually really happy with it.