When do I have to notify IP of wage increase ? What happens if I overpay ?

[yorkshirelad123]

So many mixed messages so here goes..
1.If a new job increases your net income considerably when do you have to notify the IP i.e asap or next review ?
2. If you manage to pay back the original debt and the charges before the 5yrs, can you apply to the creditors to end the IVA ?, because it cannot be right or legal that the IVA caused you to over pay ?

[kallis3]

Hi,

Inform them now as each company does things differently. It means that you shouldn't have any nasty surprises at review time.

You will never pay back more than your original total debt plus fees and possible statutory interest so if you can manage that before your five years is up your IVA will finish although your credit record will be shot for the full six years.

[Foggy]

Hi. I agree with Kallis. You should inform your IP of all relevent chajges as soon as they happen ... also check your paperwork for the specific clauses used regarding pay increases. Most allow you to keep the full increase until the next review, then your payment will increase by 50% of the net increase after the review. Some are worded differently and the increase is effective immediately and some IP's will try that on anyway and need to be challenged. This isn't usually because they are crooks -- but more that they have acquired some of their caseload from other IP's (who have retired, firm closed down etc) and try to apply their own terms to an otherwise worded arrangement.

And, as Kallis says -- if you hit 100% of the original debt, plus fees and possible statutory interest ( again some arrangments exclude S.I from the start and sometimes the creditors can be asked, and will agree, to forgive that element ) then the arrangement will end early. But your credit file will remain shot for the full 6 years.