what will happen when my salary changes?

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yewtree

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Post by yewtree » Sun Jul 22, 2007 11:04 am
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Hi all,
I'm 1 year into my IVA and am due for my annual review with my IP in less than a month. Since my IVA was accepted my after tax income has gone up by approx £400 a month (and my IP told me to wait for my annual review before my payments change). I am expecting at this review that my £350 IVA will increase to something near £700 as my expenses have also gone up slightly. However, I have recently accepted a training contract meaning that my salary from September will be less than my salary at the start of my IVA. It will be tight but I will be able to afford the original £350 payment but no more. My question is that as it will be my current salary that will be the basis of my new IVA payments, what will happen when my salary changes? I will not be able to afford the new payments obviously. Will my IP have to call a new meeting to agree a lower payment for me? Is this guaranteed to be accepted? I would speak to my IP but I'd like some advice from you guys first as you have been so helpful in the past.
Thanks!
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MelanieGiles

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Post by MelanieGiles » Sun Jul 22, 2007 3:58 pm
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Hi Yewtree

Providing that you can continue with the original payments, there will be no need for any variation to the original terms. If you are not going to be able to afford the payments, then your IP will need to formally vary the terms of the arrangement by seeking sanction from creditors at a newly arranged creditors meeting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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Oliver

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Post by Oliver » Tue Jul 24, 2007 11:56 am
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Explain to your IP that this increase is only temporary and that your income will be reducing in time again.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp
Best Regards
Oliver
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iva_squirrel

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Post by iva_squirrel » Tue Jul 24, 2007 12:25 pm
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hi yewtree,

You say you will be able to afford the original payment and if thats so theres no need for a variation. But i think you have to be as realistic as possible and make sure you can really afford it!
I'm sure your IP will find a reasonable solution for your.

Regards,
Michelle P.
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