I often check the postings on the Forum and have found them useful and comforting. I have now decided to take the plunge and post myself.
My annual review is due in December and I will have completed two years of my IVA. The first review did not take place and was not helped by poor communication from my IP, which resulted in a demand from my IP to clear a shortfall of £2600 in 7 days or risk IVA failing. We had informed them of the shortfall the previous year, but they had not responded and it came as a shock. I sorted this out with the help of family and have kept up to date on payments ever since (£1137 per month). Due to the mix up, they said we would skip the first year review. My concern with the second review, is that whilst I do not get paid over time, I have been working extremely hard to improve my situation at work which has resulted in a good pay increase, but I will end up giving it all to the creditors. I appreciate that I borrowed the money in the first place, but is there any room for negotiation, as they will receive more money from me, which will give them more than 50p in the £ that they initially agreed, but I would like to keep some of it for myself. Selfish I know! Any advice would be welcome. Thanks
You will probably have to complete a new I&E. Bearing in mind that everything has gone up out of all proportion to payrises, make sure you put down all the increases.
Usually, you can keep a cost of living increase as that is what it is supposed to be.
Anything over that, I would say that your creditors will certainly want some of it.
One of the technical experts will be along shortly just to clarify that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Your quote: "I appreciate that I borrowed the money in the first place, but is there any room for negotiation, as they will receive more money from me, which will give them more than 50p in the £ that they initially agreed, but I would like to keep some of it for myself. Selfish I know! Any advice would be welcome"
You will only ever pay the maximum back to your creditors that you initially owed or borrowed in the first place, not any higher
You should present your income and expenditure as it currently stands and if your expenditure has increased your IP will make you allowance for this, so long as it is felt the increases are reasonable.
Part of being in an IVA is that you continue to desire to see your creditors repaid as much as possible, and this means that if your circusmtances change in the future that you have to accept that creditors will want to share some of that improvement.
There is always room for improvement, and most IPs will be sympathetic to your circumstances at the moment when food and fuel prices are at an all time high.
Thanks for the comments to date. I understand that the creditors will want to see a share of it, but the reality appears that they will want any additional money above the cost of living increases. This means that any benefit I receive from working extra hours to get this increase is lost. If I was paid over time, I would get to keep 50% of it, but as it is an increase on my basic salary, I do not have that option.
If I were your IP I would allow you to retain 50% of your additional earnings in order that you maintain the incentive to carry on doing it. Perhaps you ought to have a discussion with your IP along these lines.
I hope your IP allows you to keep some of the money. I understand that your creditors must benefit from your payrise, but if you could keep 50% as Melanie says at least you'll have an incentive.
