www.iva.co.uk

I'm moving closer to an IVA - I'm in the process of gathering evidence for my IP. I have a couple of fresh questions, if you guys can be on any help:

1.
My partner has agreed to disclose her PAYE income for the purposes of the IVA (the debts are solely in my name). But she also has a small income from self employment. This is her personal project - has very little to do with me - and any profit that it makes certainly has nothing to do with me. She doesn't want this to be included and I can understand why - it does not make up part of our family income and expenditure. Given that she is not the one applying for an IVA, is she obliged to disclose this information?

2.
An opportunity for a significant pay rise may be about to present itself. So significant that I may prefer to not actually go down the IVA route. I'd like to drag my feet on the IVA for a few weeks and see how it plays out. If I can get out of my mess without insolvency that would of course be preferable - especially given that my disposable income would jump so high that I'd be paying the same amount each month with or without an IVA in place.

The only problem is, I may not be able to continue making payments while this situation plays itself out. Would it be advisable to try setup an interim DMP? We're talking a month, maybe two, until I know.

Any advice would be appreciated.

1 --- she is not obliged to disclose anything at all -- unless you are with Payplan, they will insist. They only need her income to calculate the fair share od household expenses between you ---- with no info they will assume a 50/50 split.

2 --- just short pay for a couple of months -- you will get phone calls, but just say you are trying to sort something out and hopefully the pay rise or IVA will overtake matters.

Foggy wrote:

1 --- she is not obliged to disclose anything at all -- unless you are with Payplan, they will insist. They only need her income to calculate the fair share od household expenses between you ---- with no info they will assume a 50/50 split.

2 --- just short pay for a couple of months -- you will get phone calls, but just say you are trying to sort something out and hopefully the pay rise or IVA will overtake matters.

Thanks. Could anyone explain how pay rises are generally handled under an IVA. From reading, it seems there is usually a 50/50 split, which seems reasonable. However, what I don't understand is what happens when it comes to the next annual review.

For example, let's say:

I make 30k per year (roughly £1970 per month) and I pay £300 per month to my IVA
I take a new job an get paid 50k per year. That's £1095 extra per month.

If I understand correctly, £547 of that disposable income would go towards my debts (£847 total per month) and I'd keep the other half. BUT, when the annual review rolls around and they calculate my disposable income, assuming the new job carries no additional expenditure, my payments would increase to £1395 per month... so I might as well just pay the debt off without the IVA at that stage. Or not take the high risk, high pressure job in the first place.

Would be good to have a full understanding of how this all works before it's too

Permanent pay rises are treated differently, and seperately, to overtime and bonus payments.

Overtime / bonus payments are dealt with under the 10% 50/50 rules (sometimes this clause is just 50/50). Say your usual basic income is £2000 per month and, one month, you get overtime of £500. You are allowed to keep 10% of the basic, so £200 is yours. Then the remaining £300 is split 50/50 --- you keep £150 and pay in £150. Meaning, from the overtime that month you keep £350 and pay over £150 to the IVA within 14 days. This is dealt with on a month by month basis.

Permanent pay rises (assuming you have the usual clauses) are dealt with as follows: You inform the IP at the time of the rise. The whole increase is yours between the date of the rise and the date of the next annual review. At the annual review the rise is taken into account and 50% of the net increase is then added to your regular IVA payment from then on. This becomes the new baseline and the 10% disregard for overtime and bonus payments also increases accordingly, going forward.

Clear as mud ?