Hi ,
Could you offer some advice on the annual review calculation? my present IVA is now at year 3 and the formula used to calculate the revised payment is as follows
total disposable income - current contributon = total surplus /2 = increase + exisitng contribution.
is this correct? the trouble is that each year the figure rises to the point now where we are paying 80% of our joint surplus increase.
I assumed that the total surplus would be divided by 2 giving the revised payment each year
any advice or guidelines would help
Hi Paul, I'm not sure I know what you mean, at annual review (I've had two) I just present a new income and expenditure and so far *touches wood* they've gone through fine.
One of our professionals will be along very soon to reply to your post. Welcoem to the forum by the way x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
It depends on your individual case and any modifications proposed at the original meeting. In most cases the new I&E is done and the current contribution subtracted from the new surplus. The balance is then divided by two and this is then added to the contribution from the previous year. You keep the other half.
Hope this makes sense but if in doubt ask your IP for clarification.
Hi Lesley
thanks for the reply and the welcome !
I guess the point I was trying to get over is ... is there a laid down formula for calculating excess ie if you get a pay rise?
if I look at the IVA companies guide they say any increase you Keep the first 10% then increase the payments by 50% of the difference.
yet on the calculation used it actually takes more than 45%...
still only 24 to go !!
lesley_ wrote:
Hi Paul, I'm not sure I know what you mean, at annual review (I've had two) I just present a new income and expenditure and so far *touches wood* they've gone through fine.
One of our professionals will be along very soon to reply to your post. Welcoem to the forum by the way x
Thanks for that Michael,
yeah that does confirm the same as my IP..
I should not complain realy, at least I have only two years to go and fortunate to have had a pay increase each year !! I guess the problem is the agreed costs dont always work in reality and the payments seem to have grown disproportional to the increase
but thanks for the help
Michael Peoples wrote:
It depends on your individual case and any modifications proposed at the original meeting. In most cases the new I&E is done and the current contribution subtracted from the new surplus. The balance is then divided by two and this is then added to the contribution from the previous year. You keep the other half.
Hope this makes sense but if in doubt ask your IP for clarification.
If your feel that your costs have increased by more you could ask for a review. Bear in mind the CCCS guidelines have not been updated for a long time despite inflation particularly in the basics like food and petrol.
Your case worker may be able to reduce your payments down a little to make the arrangement more affordable as an IVA is not a punishment. Well done for getting so far but you really by now should be seeing some of the benefits of your increased wages.
I think that your formula is right - but to simplify it you probably have to increase your contributions by 50% of the net increase in disposable income at the end of each review period.
