I think I know the answer but I'd like to be sure.
On my annual review I have been told I need to pay a lot more moving forward due to a increased income and a reduced expenditure.
Income went up by 3% due to annual company payrise.
Expenditure went down by approx £50 a month due to savings in car insurance, utilities etc.
My increase in payment is way over what is considered representative of the above figures.
I was under the impression that, with regards to income, any increase over 10% applies and then 50% is contributed and any only 50% of overall expenditure saving is contributed.
Am I right or am I talking absolute rubbish and must have read some rules somewhere wrong?
The increase in income should increase the IVA payment by 50% of the increase. Savings in expenditure isn't covered by any pre-agreed formula or rule and would be taken in it's entirety, so all of the savings would increase the IVA payment.
So, your new payment should be the old amount, plus 1.5 % of your income (after deductions of tax etc) plus the £50 or so that you have shaved off of your income.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Foggy wrote:The increase in income should increase the IVA payment by 50% of the increase. Savings in expenditure isn't covered by any pre-agreed formula or rule and would be taken in it's entirety, so all of the savings would increase the IVA payment.
So, your new payment should be the old amount, plus 1.5 % of your income (after deductions of tax etc) plus the £50 or so that you have shaved off of your income.
