Hi all, new on here so excuse my ignorance (or otherwise!)
I have just submitted my second set of supporting documentation to CCCSVA for them to draft up my IVA - however, just before sending this, I spoke to them (for about the tenth time!)to ask what would happen in the event of a pay rise during my IVA,if approved, and any rise in the cost of living etc.
I was told that basically the Creditors would want all of any such improvement in finances, and that no general cost of living eg.inflation etc.would be taken into account as 'their costs will go up also over time.'
Now I understand that we can keep the first 10% plus 50% of the remainder of any overtime, but surely over five years I am not expected to pay absolutely 100% of any pay increase or live as if nothing has gone up in price! I am a little worried as have read some negative comments about haw CCCSVA set up / managed their IVA's, we are now a fair bit down the line in getting this sorted but am concerned they may not do the best for me (at the same time understanding the creditors want the best return).
I think if you are having doubts now then you should maybe contact a couple of other companies too. Five years is a long time to be in a relationship with a professional that you are not 101% happy with. We are with cleardebt and have every confidence in them, Melanie Giles comes very highly rated from other forum members too. www.iva.com shows their details. It may take a couple of extra weeks to re-send out paperwork but you need to be sure you're happy. Hope this helps.
I agree with Relieved33, if you're not happy with the advice that you are being given it would be a good idea to take advice from 1 or 2 other companies.
If your expenditure goes up (and I can't see anything going down at the moment!) you will be able to offset that against any pay increase, with the balance being paid into your IVA.
I am with the others on this you need to speak to a couple of other companies and make sure that who you are with you are 100% confident and comfortable with. 5 years is a long time and you need to trust and have confidence in your IP.
Their advice re increase in living expenditure will not be taken into account is wrong. If their fees go up it comes out of the pot and has to be agreed by the creditors as it will be them missing out not you. The whole idea of an annual review is to determine if your situation has changed ie you may be able to afford to pay more money into the IVA if your situation improves. Also a variation may be put forward to lower the payments should expenditure rise more than your income.
Most of the new IVA's are now including the protocol where the IP has the authority to lower payments by up to its either 10 or 15% without having to call a variation meeting if you are struggling with repayments for extra outgoings. You might want to ask if this will be included in your proposal.
Whatever happens make sure you are happy with the company you go with.
You should only ever be expected to pay across about 50% of your payrise, could be even less depending upon how much your expenditure has gone up.
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
That's what I forgot Jan i knew there was something else I was going to write.
The new IVA protocols are only expecting 50% of payrises or additional income due to promotion to go into the IVA. This will mean there is still an incentive to try and go for promotion or work hard for extra money because not all of it will be taken away.
Always check your terms and conditions though because not everyones IVA is the same. Always go by what was agreed in your personal case.
Hi
You should be allowed to offset part or all any payrise against any increased living expenses so I don't think that your question has been answered correctly by your contact at CCCSVA.
Go back and get to the bottom of this
Regards
Thanks for the advice guys, interesting that Lord Soth is with CCCSVA and was allowed to keep 50% of pay rises - does the increased expenditure have to be proven (what is asked for at an annual review?), or is the increased cost of living simply acknowledged?
As long as it is within the CCCS guidelines you should be fine if its above they may ask for proof of expenditure. Don't bother asking for a list of guidelines they don't publish them online for fear of naughty people claiming the high end of the allowances [:D]
I am very suprised that you have received this sort of advice from the CCCS staff - as I imagine so would their own IP if she got to know what her staff are saying to clients!
Let me clarify the position for you clearly. At the time of each annual review, you will be asked to provide details of your current income and expenditure - which will recalculate the then disposable income. If this has increased from the figure used for the IVA or the previous year, then your ongoing payments will be increased by 50% of the uplift.
Hope this helps - but if you are not sure ask to speak to the IP directly as it is very important to understand what you are agreeing to when signing up to an IVA.
Chrisdg1968 wrote:
Thanks for the advice guys, interesting that Lord Soth is with CCCSVA and was allowed to keep 50% of pay rises - does the increased expenditure have to be proven (what is asked for at an annual review?), or is the increased cost of living simply acknowledged?
