www.iva.co.uk

Have just had figures for my review but just wonder if someone could clarify a particular clause in my proposal which will help me. I understand the bit about 50% net value of earned income and not paying £50 of such calculation and not paying half of nay increase in rent/mortgage, council tax car insurance, and road tax from that stated in the proposal. What I do not understand is the bit where it says I won't be required to pay the full reduction in any unearned household income and "there will not be a requirement to pay any element of any increase in unearned household income. Could someone please tell me what that means as my husband has got a different job which he has had for some months now and has to go twice as far as he used to. Our IPs know this but it does not seem to be noted anywhere on the review??

Please help!

Stella

Your post is a little difficult to understand - are you saying that your expenditure has increased but your IP is not reporting this? This is unlikely to be of issue to him/her unless this is causing you to struggle to make your IVA payments.

Sorry its confusing, I am very confused! Firstly I would be grateful if you could confirm exactly what the wording" there will not be a requirement to pay any element of any increase in unearned household income" means, because I don't understand the terminology and secondly on the review they have taken account of 50% overtime, less £50, less increases of 50% as I said before on mortgage etc but there is nowhere on the review that they have deducted the cost of the extra amount of petrol used (as my husband has to go twice as far now so the petrol cost has doubled)from our original proposal. Our IP was informed of this when my husband changed jobs. Also I can't see noted any other increases i.e. electric and my petrol costs. Is this supposed to be taken into account. I thought that would come under the heading "Less: Reduction in unearned income" which they have put a zero against.

I hope you can make more sense of this!", I just need to understand the way it works and the terminology

Thanks very much

Stella

Hi again

I know its Saturday and everyone's enjoying the lovely weather and football but could I have a reply please! Looking at other postings I assume the cost of the extra petrol etc will have to come out of our half of the overtime earned(not a problem if that is so!). Some weeks my husband earns less than whats stated on our proposal and sometimes more, I am finding it very difficult to work out the figure they have used on our six monthly review as hubbie is paid weekly and my wages have reduced slightly due to less overtime.

Just trying in vain to work it all out (no wonder I am in an IVA!)

Thanks very much

Stella

can I ask which company you are with as this may help others as to how they calculate income and expenditure

I'm sorry Stella - but I am struggling to understand the wording here - and I am an IP!

I assume that they are telling you that they do not intend to seek any uplift from you. Are you disputing if any further monies are due from you? If so, I think that you need to take this up with your IP, and ask them to send you a statement of account rather that wording which is difficult to understand.

Thank you for your reply. Yes our IP is intending to seek the uplift!! I will type word for word the clause in our proposal as follows:-

"In addition to the proposed monthly contributions, I shall pay no less than 50% of the net value of my monthly earned income I receive in the form of overtime, bonuses and any other increase in my net income in excess of the basic income that is noted in the proposal. I will not be required to pay the first £50 of any such calculation and half of any increase in rent/mortgage, council tax, car insurance and road tax from that stated in the proposal the full reduction in any unearned household income. There will not be a requirement to pay any element of any increase in unearned household income. It shall be the supervisors responsibility to review the payments every six months, using my wage slips, to ensure full contributions are being made".

Perhaps you can make head or tail of that, I didn't think I was stupid but perhaps I am. What is unearned household income?

Yes I have had a statement which shows:-

Average net income per month =
less income per proposal =
50% increase in contribution required per month =
less first £50 of increase,
less 50% increase in rent/mortgage, council tax, increase in car tax and insurance and childcare =
then net change per month =
then increase in earned income per month
then Less: Reductiion in unearned income
Total monthly increase
which then equals an amount to be paid.

Sorry for the long reply but I thought I would do it word for word, I just don't understand what the unearned household income bit is about and where it says Less: reduction in unearned income they have put zero, no mention of any increases regarding petrol etc which we submitted on an I & E.

Wish they would do it in English or at least something that I could understand!! and it might help someone else to understand their IVA too!!

Thanx v v much

Stells

Grateful for you reproducing that for us. And either I am being inredibly thick today, but I find that incredibly badly worded and ambiguous.

Is there anyone else out there who can interpret please - I think I would find this clearer if it were written in Swahili!

Thought it was me. I assume (rightly or wrongly) that unearned household income would be expenditure i.e.extra costs for petrol etc as there is nowhere else that it is shown on the "6 monthly statement" to be deducted, even though it is on our original I & E as a separate amount.

I hope that paragraph is not too ambigous (not good!).

Think I am going to learn Swahili! and I hope someone can reply perhaps if they have this in their proposal too.

Stella x

Hi
I see unearned household income as tax credits,child benefit etc etc,so any increase in this will be exempt
Regards

Hi

Do they take account of extra expenditure then on a six monthly review? Perhaps that is supposed to be funded from our 50% of the overtime?
Thank you all v much for your help

Stella

I would say that that is a fair assumption, Stella.