www.iva.co.uk

Hi,

** Apologies - this may appear twice! **

I have a quick question. I'm just going through my second IVA annual review and I'd just like to check the following scenario;

I had a temporary promotion in May, significantly increasing my salary. My original IVA payment was £120. My new IVA payment became £280.

My annual review has now been calculated at £430, even though my salary hasn't changed since May and my I&E hasn't changed either.

My caseworker said that the original review to £280 was based on a new monthly salary that was £200 less than what I submitted. Even though he could see the May I&E and it showed the right salary, he didn't know why it had been entered wrong.

He also stated that the amounts submitted in the I&E were too high in some areas (this wasn't explained when the May I&E was submitted).

What they have essentially done is calculate the payments twice, with the same I&E values but different IVA payments.

This doesn't feel right and I have questioned it - all they keep saying is they've put the numbers in and this is what it has calculated.

I believe the calculation should be made based in the original £120 IVA payment as this would make the new payment £380.

Does anyone have any thoughts or comments? Do I push back or is this how it works?

Thanks in advance, Peter

if the creditors accepted the previous expenses and it is within allowances they are as far as I understand not allowed to start screwing it down.

What is your new salary less original expenses equate to per month ? most peoples expenses go up year on year and an IP can vary the payments by 15% without requirement for creditor approval.

if disputing with them do everything be recorded communications, email or recorded delivery in the event you need to make a formal complaint.

Hi,

Thanks for the reply.

amount available to creditors in May was £435, so less original £120 was £315. Half that £160 + £120 = £380. That was the one they got wrong and it ended up £280. So they've redone it now and get the £160 + £280!

As you say, they have accepted the original expenses. Either that or the IP have just made the calcs and not validated it with the creditors, otherwise surely they would have picked it up as being wrong?

Hi Peter - why are you halving the £315?

Hi Lisa,

This is apparently the calculation my IP has used; (new surplus income - current contribution) / 2. Surplus was £435. Minus the £120 then divide by 2.

The probably is they have done it twice with £120 and then again with £280.

"I have used the guidelines which I am provided to the best of my ability to keep this increase to a minimum" was the exact reply I got to the query.

I get the calculation, what I don't get is them doing it twice with two different figures.

It sounds as if they have already told you this was their error the first time.

Would I be within my rights to question it and insist it be recalculated? I would be happy with a correct figure of £380 which is what it should have been in May.

Absolutely. However as I said in a different thread you are entitled to extra expenditure when you get a promotion or start a new job so make sure your IP allows this too.

Interestingly the 10/50/50 calculation make the total £325! Should they have advised that this was an option?

Given that the promotion is only temporary it is certainly an option. We tend to look at each way of calculating the payments and try to reach the best deal for debtor and creditors alike. Your IP may operate differently.