if My IVA is accepted ...

Get expert opinion. This is the place for new questions to be posted.
9 posts Page 1 of 1

michaela194

User avatar
Posts: 3
Joined: Sat Jan 05, 2019 4:11 pm

Post by michaela194 » Sat Jan 05, 2019 4:11 pm
Hello, just waiting to hear if the IVA proposal has been accepted. If it is accepted, I am on my own now , and I have 3 children, Is it ok to look into having child Benefit now and can I start working part time , will it affect the IVA?

Foggy

User avatar
Forum Expert
Posts: 28726
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sat Jan 05, 2019 4:21 pm
You should, really, have investigated Child Benefit before entering the IVA as it forms part of your income when awarded. Changing jobs should not be an issue as long as your income continues to be sufficient to service the IVA payments as well as allowing you to live. If your income increases then, so will your IVA payment (but only by 50% of the net increase in income, so you would still be better off).

Good luck with the application.
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

abbiesmum2003

User avatar
Posts: 835
Joined: Sun Dec 02, 2012 8:50 pm
Location:

Post by abbiesmum2003 » Sat Jan 05, 2019 5:40 pm
Have you not been able to qualify for child benefit before now? You are usually entitled to it from birth of child unless high income bracket. And as Foggy pointed out this should have been looked into and discussed before your IVA got this far.
Child Benefit gets counted as income. Can be off set by expenses associated with children but still counts towards your household income from the outset.
As for working, again like Foggy said, if you earn more than what you have declared for the IVA it can alter your iva payments and mean you might have to increase/decrease what you pay into the arrangement. Did all this not get discussed with you during the setting up stage of the iva?

michaela194

User avatar
Posts: 3
Joined: Sat Jan 05, 2019 4:11 pm

Post by michaela194 » Sat Jan 05, 2019 7:59 pm
Thank you for the information. When the IVA process began my income was concrete and I knew how much money I had available to budget it, however within that time my husband has left me now and although I will be able to afford the IVA , I need additional money from now on, as I need to feed the children. Before my husband left me , he covered those sorts of costs but now I have to take responsibility for the financial worry fully from now on.

Surely if I am able to keep up with the IVA payments , that’s the most important thing for HMRC? I will be linked into for the IVA for many years and all sorts of changes may happen over the years. Will I need to inform them about any changes over the years?

Foggy

User avatar
Forum Expert
Posts: 28726
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sat Jan 05, 2019 8:13 pm
You need to pause and re-evaluate your change in circumstances --- your IP must ensure that you have enough agreed allowances to feed yourslf and your children. Now and going forward EVERY change affecting your finances has to be disclosed to your IP. All of the figures they are currently working on no longer apply and an IVA is a legal agreement which cannot be falsified. You will be tied in for 5 years at least, possibly 6 if you are a homeowner and unable to release equity in the 5th year.

At what stage are you and who with ?
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

abbiesmum2003

User avatar
Posts: 835
Joined: Sun Dec 02, 2012 8:50 pm
Location:

Post by abbiesmum2003 » Sat Jan 05, 2019 9:04 pm
As your circumstances seem to have changed significantly since process started and your budget is now very different, your allowances as a single adult family need to be reviewed and altered accordingly.
Like Foggy said all changes related fo your financial life will need to be declared. this includes overtime, ppi, inheritance and windfalls. Was this sort of thing discussed?
So much can and does happen in 5/6 years. You must understand everything that a legally binding arrangement like an IVA brings. Its not easy.
Who are you with and has your proposal already been presented to creditors? Has the company properly discussed all your allowances for your family (bearing in mind all this will now be different if youre on you own) and thoroughly explained an IVA?
It sounds like you may need to scrap this iva and start afresh with your revised figures.

Foggy

User avatar
Forum Expert
Posts: 28726
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sat Jan 05, 2019 9:08 pm
Michaela -- can I ask what your level of debt is and are you a home owner ? It could be that an IVA is no longer the best solution for you. And why did you reference HMRC ? Are they a creditor ?
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

michaela194

User avatar
Posts: 3
Joined: Sat Jan 05, 2019 4:11 pm

Post by michaela194 » Sat Jan 05, 2019 10:42 pm
Hello

Yes it’s a HMRC creditor . I’ve had professional advice about the IVA and the proposal is manageable and I hope it will be accepted . I have a home which is on the market. Once it’s been sold... I shall clear the bill immediately . I will be able to pay for the agreement monthly, but if I chose to work part time , it will not affect the monthly payments but I want to know I will not be penalized . Surely it’s better to bring more money into the home , instead of not ?

Thank you

Foggy

User avatar
Forum Expert
Posts: 28726
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Sun Jan 06, 2019 10:57 am
michaela194 wrote:
Hello

Yes it’s a HMRC creditor . I’ve had professional advice about the IVA and the proposal is manageable and I hope it will be accepted . I have a home which is on the market. Once it’s been sold... I shall clear the bill immediately . I will be able to pay for the agreement monthly, but if I chose to work part time , it will not affect the monthly payments but I want to know I will not be penalized . Surely it’s better to bring more money into the home , instead of not ?

Thank you
I assume that your IP is aware of the house sale as the proceeds of the sale will be due to be paid to your creditors anyway, on top of the regular monthly payments.

Yes, it is better to bring more money into the home, but this extra money (or, at least, 50% of it) will be also due to be paid to your creditors.
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
9 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”