www.iva.co.uk

With regards to child benieft and ivas, please advise. Me and my partner are looking at a ive last year he earnt 54k so we now owe roughly 900 in tax. From what ive read this can be included in a iva if we go ahead. Im confused however how this will work out in future if entering into a iva. He managed to earn so much through overtime so im unsure if he will earn as much or not years to follow. If in a iva and i accept payment of child benieft and he did earn over and got a tax bill at the the end of next year, how would we be expected to pay the tax charge? Would i be better to just opt out? But then my creditors would be losing out as i am entitled to some. Very confused is there a clear answer?

Hi,
I'm not sure if your tax bill for this year can be included in the iva initially, however my husband also earns a similar amount and it has not been a problem for us during our IVA. I completed the tax return before December, and then hmrc have taken the money we owe back through his tax code, rather than in one big tax bill. The iva company I'm with have been fine with this, and simply adjusted my husbands income on his i&e. Like you said, at £54k, you are still entitled to some element of child benefit, so it is beneficial to both you and the creditors. I think its a crazy system, but don't get me started on that one!
Good luck

Any decent IVA company should be able to answer that question and help you deal with those changes.

Steer clear of any that appear not to be able to cope with things like that.

AsLifenoteasy says, your IP should have come across similar situations before and be able to assist. I would have a chat to several firms and see who you feel best with ( some of the larger firms have a habit of not dealing with clients as individuals and first line telephone support is abyssmal!)

Im looking at going with Vincent bond. Ok so in that case i have a extra 200 to put in the pot per month so looking at £400 a month payment into a 50k debt how likely is that to be excepted? Also the debt advice line advices me against iva as they say you can now end up with a secured loan to release equity. My property is currently valued at 150k with outstanding mortgage of 125k over 33 years. Am i likely to be stuck still paying a secured loan after iva? And if possible is it true that the repayment of said loan can only be 50% of what a normal iva payment is? Sorry so many questions lol im worried as u can tell this iva is scary stuff

That is likely to be accepted but if you cannot realise equity at month 60 you will be asked to do another 12 months.

If the conditions of your IVA include provision for taking out a loan that is one of the factors that you have to consider.

There is so much variation at this point that anything might be possible 5 years down the line.

The child benefit issue is quite common and your IP will take this into account. It would be unfair to take overtime under the 10% 50/50 rule and then not allow for the tax to be repaid as this penalises the client.

The new protocol does mention secured loans but not all firms have adopted this. However while we have not incorporated the secured loan into our proposals it is possible that creditors may still ask for this at the meeting. Regardless, given your current equity situation you would not qualify for a secured loan, extension or a remortgage so it would depend on the equity in year 5.

Finally, if you do have to raise funds by way of a remortgage or secured loan, the increased payments cannot exceed 50% of the IVA payments so this was correct advice.

Current Protocol provisions allow for equity to be released by remortgage or secured loan. At the end of the day this will depend upon your personal circumstances, and if release isn't possible a 12 month extension will apply.

Repayments for equity release shouldn't be more than 50% of the IVA repayment and the remortgage is limited to 85% LTV. The new mortgage term should not extend beyond the later of your state retirement date or the existing mortgage term.

Ok thanks for your help, one last question we owe my partners mum 15k would it better to exclude her from the iva or include so that she can vote yes for us?

Her voting rights will be slightly different as an associated creditor, but she should be included. The other creditors might ask her to stand down from receiving a dividend (basically to increase theirs),

Hi Kerry - I'm afriad 'connected party' votes have to be discounted so you won't be able to use her vote to bump up the votes. She could however offer to waive her right to claim in the IVA if the IVA is accepted to make the IVA more attractive.

Ok so now i know my facts i defo wanna go for iva so now its just Vincent bond or mc cambridgeduffy both had great customer service when i called and both seem to have shining reviews. Any differences between to two i should consider? Thanks

Vincent Bond will do the spadework and pass you on to an IP firm on their panel -- you can ask them to pass you to a specific firm if you wish. They are well respected in the industry.

McCambridge Duffy are an excellent firm and there is the advantage that they have a representative on this forum to assist with any niggles.

Gonna go with mccambridge Duffy then as i wanna b dealing with the company i choose not b passed to someone else. Also cambridge in the name is where i was born so gonna take that as a good omen LOL. Thanks everyone and wish me luck

Good luck! If the posts on here are anything to go by, you have chosen well.