Reading other posts and with my experience, it is evident that some IP's are very agrressive in their attempt to raise the contribution with the customary threathening sign off on their letters, "Failure to undertake the same will result in obvious consequences" Now that my rant is over, I would like to ask a question.
We originally applied for a joint IVA but my wifes was rejected with no explanation. A year has passed and my IE includes 100% of my wifes earnings. Since then, her liabilities have increased with additional debt, mainly due to buying essential household goods or repairs and the fact that my allowances are totally inadequate.
Surely this should be allowed in my IE as all her earnings are???
Also, she is not happy to reveal all her private information as she is not really part of the IVA?
Andy is right - speak to your IP and if necessary get him to revise the contribution after review
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
As I mentioned, My wife is reluctant to disclose her debts and does not feel obliged to do so as she is not part of the IVA. Bearing in mind, I am not looking to lower my contribution, does she have to reveal her personal details?
Her earnings are £800 per month with £160 debt payments per month
Some of her details - yes such as what you have indicated
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
If your wife is not party to the IVA, then she does not need to provide detailed financial information to your Supervisor - but there is a need for her to declare her earnings so that the IP can determine that you are stil paying fair shares towards the household budget.
This does not mean that any increase in her disposable income should be included in an increased IVA payment - and you should dig in on this point if this is requested.
Thanks for the help on this. I am currently trying to compose a letter to my IP to hopefully resolve this and I am still unsure on this matter.
Originally my I&E included my wifes earnings of £400 month even though she was not part of the IVA. I had to include her salary or it revealed I could not afford the minimum IVA payment.
My salary has risen by 5% which is below the rise of my outgoings although my wifes earnings have doubled. At the same time, a dependant has moved out and we have lost his contribution. should I expect the IVA payment to be based on my salary + the original £400 declared for my wife. If that is the case it will be obvious that I could not pay the minimum IVA payment based on my income and expenditure. Having said that, to ensure my IVA succeeds, my wife is prepared to contribute to ensure the payment is made???? Sorry if this is unclear!
You will need to maintain at least the level of contributions originally pledged under the terms of the IVA - so if this means that your wife has to pay a larger contribution, I am afraid this will be necessary.
It is difficult for me to really comment on this as I cannot see the figures concerned. You will need to pay the contribution you originally agreed to, and if more of your wife's surplus is required for this then you have to accept this - but she should not have to pay more than is required to top up your shortfall.
I think this answers my query. My wife originally took extra work as there was a sharp rise in the mortgage payment and as I said, a dependant left home.
The result being, we can with a struggle just manage the payment, however my IP seems agressive in trying to raise the payment. They only ever refer to a slight rise in my salary but do not take into account inflation or change of circumstances etc. Hopefully my next letter will resolve this. Thanks again for your assistance.
Send you IP a complete list of your outgoings explaining that your wife says contributes to 50% of them (or whatever percentage she does). This will then identify to your IP what your current contribution should be which should take into account inflation and the extra cost of living. Unfortunately if your wife does have a big surplus some IP's can be difficult as can creditors. It is one for a fair negotiation though. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
