Hi. Im applying for an IVA at the moment and in my proposal I am allowed to earn an extra 10% on top of my wages as overtime. This works out at about £180.
My partner currently does not work at the moment as childcare fees were costing more than she earned.
If my partner gets a part time job and earns £180 per month then Im told that this will affect my IVA payment as I will have more disposable income. Is this true as I am allowed to earn the same amount in overtime without it affecting my payment.
Also as my partner currently does not contribute any money to the household costs then does this mean that all of what she might earn will be my disposable income.
I am a bit concerned by these two situations as I have specifically asked these questions to my IVA supervisor but not had any clear answer.
The effect of your partner gaining employment, will be for her to be in a position to contribute more to the costs of running the household. You will therefore contribute a lesser portion - and therefore your disposable income will increase.
thanks for the reply. I'm still a bit confused as to how I can earn 180 extra without increasing my payment but whatever my partner earns will increase my payment.
Also if my partner started earning then almost all of her income would surely be my disposable income as the allowances have already been made in my proposal for my household. Therefore am I right to assume that my IVA payment will be increased to include almost all of my partners earnings.
Because your partner is not subject to an IVA and will need to contribute to the household expenditure. This does not affect your income, but will affect your expenditure - and you will share the household expenditure in the same ratio as your respective earnings.
I have spoken to a number of other IVA advisers and they have mentioned that if my partner started earning she would as you say contribute to the household bills in the proportion of her earnings. Any surplus after her contribution would be hers to do whatever she wanted with.
My IVA proposal shows that HER surplus is paid to the creditors. As everything is in my name surely any surplus after she has contributed to the household bills should be hers and not go to the creditors. The only extra money going to the creditors would be the surplus that I have.
Another query I have is:
If I have a windfall I am expected to notify my IP and pay it to them. What happens if my partner has a windfall. Im assuming that has nothing to do with the IVA and does not need to be declared.
Your partner would need to have agreed to her surplus being included into the IVA - but this does often happen on the basis that she may well have benefitted from the debts. It is a matter for your own consciences whether she includes her disposable income into the pot - creditors may insist on it at the creditors meeting in any case - and your IP may also tell you that her contribution is necessary in order for you to make a sensible offer of repayment.
If she receives a windfall then this is hers to keep and cannot be included in your IVA.