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Posted: Sat Feb 02, 2008 12:09 am
by GreenGoblin
Hi,

I've been in an IVA 2 years and now due 2nd my annual review. I've had no problems so far but I've been trying to get an answer to this question from my IP but he hasn't very helpful so I wonder if anyone out there can please assist me?

6 months ago I had to move to a different job (with the same company) nearer home to stop me commuting so far so I could help my wife care more for our very young child (he's only 9 months old). To do this I had to take a pay cut of about £130 per month.

The IVA is in my name only and my wife has not been affected. My wife works full-time and since going into the IVA my wife as well as going half with all the bills etc. has supplemented my income each month to ensure I can maintain my contributions to my IVA.

I was told at the start by my IP not to include all of my wife's income and only include what she pays me each month for bills and the supplement she gives me because all of the debts were in my name only and my creditors are not able to touch whatever spare income she has left over at the end of the month. Just as I was told that when I try to release equity from my property in the 4th year my creditors are only entitiled to half of any profit made as my wife is entitled to the other half as the house is in both our names (could someone please confirm that this correct?).

At the moment we've had a huge increase in our mortgage and some of outgoings such as the upkeep of our little boy as well as me taking a pay cut. My wife is supplementing me more each month to ensure my contributions are paid.

I'm not looking to reduce my contributions each month as we are both managing as my wife pays a huge chunk of the utility bills and child costs etc. with what income she has spare after paying me.

The real big question I need answering please is that recently I have been given the opportunity to work overtime (not on a regular basis) and if I work it, it calculates out to be the £130 pay cut that I have had to take and will also relieve some of the financial pressure my wife has in paying me more each month and I can contribute more to the upkeep of our home and our little boy.

What my IP can't tell me is how I show this on my new income and expenditure sheet. Do I include the overtime in my total income and show a lower income for my wife without the extra supplement she gives me each month or vice versa?

I'm confused because I don't know what decision to make about the overtime and like I said earlier its not guaranteed every month. Compared to this time last year I'm no better off because of my mortgage etc. (even taken into account my lower petrol costs from moving jobs) its just my wife increasing her monthly supplement to me and paying for more of the bills and things that is making things manageable.

I'm sorry this is so long winded but I spoke to my IP this morning and explained all of this over the phone but he couldn't give me an answer whatsoever.

Any help or guidance would be much appreciated.

Thank you

Posted: Sat Feb 02, 2008 1:07 am
by MelanieGiles
Your income and expenditure should show your salary together with the amount that you actually pay towards the household bills. I personally would not expect a client to disclose overtime monies, as these are not probably regualar income.

Posted: Sat Feb 02, 2008 1:13 am
by GreenGoblin
Thanks for your reply.

I know I'm sounding a bit thick here so what I'm currently doing is right on the I&E sheet with me stating my full income and my wife just showing what she contributes to the household bills etc. not her full income?

Thanks!

Posted: Sat Feb 02, 2008 1:15 am
by MelanieGiles
It's probably better to show the income on the top line and then the sharing of expenditure against each expenditure line on the basis of the same ration as incomes. Your IP ought to be able to work this out for you.

Posted: Sat Feb 02, 2008 1:30 am
by GreenGoblin
Hi Melanie,

Last year I just showed seperately what my income was along with what my wife contributes to the household expenditure as a whole (not her full income as I was told the year before) and this was accepted.

I'm just concened about how accurate the fact I was given when I first started my IVA about my creditors not being able to touch whatever spare income my wife has left after paying me each month (which isn't huge) as the IVA is in my name only.

I've heard conflicting stories recently and just needed some clarification.

Posted: Sat Feb 02, 2008 1:31 am
by MelanieGiles
Probably better to just stick with what you have done before to be honest.

Posted: Sat Feb 02, 2008 1:41 am
by GreenGoblin
Many thanks for your help!

Posted: Sat Feb 02, 2008 11:46 am
by Adam Davies
Just to add that it will only be your share of the equity that will have to be released,not your wife's share.
Regards