Another one for the bankruptcy pile

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MARK1882

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Post by MARK1882 » Mon Sep 06, 2010 6:38 pm
Six months into IVA & all is well. Wife has picked up some work but is not contracted or guarenteed. To cut a long story short we have been paying in half of what she earns extra into the IVA pot. However, this has triggred a new IE form to fill in.

Original IVA

Myself: £302
Wife £227

Total £529

We have recently had our tax credits cut by £90 due to an overpayment so they are now zero. My wifes wages are roughly £390 a month. Which basically equates to a £300 a month rise in income. On taking out the IVA I was lead to believe probably half of this would have to be paid back in.

IVA new figures

Myself: £418
Wife: £390

Total: £808

This is an increase in payments of £279. Forgive me if I am wrong but does that not mean my wife would be working for £21 a month. Don't get me wrong we want to pay back what we can but this seems a bit extreme. Any advice welcome.
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Broke of London

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Post by Broke of London » Mon Sep 06, 2010 7:10 pm
Hi, I'm sorry you feel so downhearted. It is in everyone's interest for you to succeed so I'd speak to your IVA company again.
 
 

Adam Davies

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Post by Adam Davies » Mon Sep 06, 2010 7:50 pm
Hi
I would think half of your wifes extra income would be fair otherwise as you say she is working for £21 per month.
Speak with your IP and try to agree that only half of her extra income is paid into her IVA
Regards
Andam Davies
 
 

MARK1882

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Post by MARK1882 » Mon Sep 06, 2010 8:57 pm
Thanks. I have tried that & was told that the IE did not work out that way. Her hours / earnings are by no way guarenteed either.
On signing up for the IVA I was under the impression that only half of any extra income would be payable.
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MelanieGiles

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Post by MelanieGiles » Tue Sep 07, 2010 1:11 am
As ever - it depends upon the wording of the contract that you entered into with your creditors - but under the IVA protocol (assuming that your case was presented in accordance with these guidelines) she should never have to pay over more than half her increased earnings.
Regards, Melanie Giles, Insolvency Practitioner
 
 

MARK1882

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Post by MARK1882 » Wed Sep 08, 2010 5:37 pm
Thanks for all your help and advice. A sensible conclusion has now been reached. We will have to pay in 50% of what Beverly earns. Apparently, because she has got the work after the IVA that is the ruling. If she had been working when the IVA was agreed then it probably would have all had to be paid in,. At least this means it is not pointless her working.
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kallis3

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Post by kallis3 » Wed Sep 08, 2010 5:43 pm
Glad you got it sorted Mark. Hope everything continues ok now.
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
 
 

Shining

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Post by Shining » Wed Sep 08, 2010 7:23 pm
I think that is a good solution and so pleased a sensible conclusion has been reached. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Adam Davies

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Post by Adam Davies » Wed Sep 08, 2010 9:56 pm
Hi
A sensible conclusion
Regards
Andam Davies
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