Hi, Our annual review on our IVA is due this month and I am having to complete our Income & Expenditure however we currently pay #390.00 per month (28p in the pound to the creditors on #35,550 debt) and since our last review our combined salaries have increased by an extra #834.92 which now gives us a "surplus" income of #439.99 per month.
If we want to keep paying the agreed amount do I have to keep our "surplus" income the same or will our IP want to increase the monthly payments to coincide with our increase surplus as we are just starting to manage each month with the little that we have left over.
There are a number of posts on this forum about income and expenditure reviews. It can be a very confusing situation. The first thing to do is check your proposal and Chairmans Report to see what your obligations actually are.
What do they actually say?
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
You may want to look at your I&E especially as we are coming up April when the majority of bills will increase (ie council tax/car tax etc)
My partner recently changed job roles within his firm and his salary went up significant however it was about 6 months before our review. So we infomred our IP, resubmitted an I&E based on the new salaries plus increases where required in our I&E and as result voluntarily increased our monthly contribution by £20 however when we have our review I'm expecting this to increase by about a further £40 due to additional changes since.
What you must ensure is that you I&E accurately reflects your living expenses and be prepared to increase your monthly contribution. Your IP should not increase your monthly contribution by any more than you can afford.
I think what most people forget about when they get their proposal is that the monthly contribution is not fixed it represents the minimum contribution the debtor can make at the time of the proposal and is subject to change.
I find your posting interesting as my IVA clearly states 60 payments of £700, I have no mention of overtime, bonus being paid to my IP. Thou I do have a annual review and at the last review my payments increased to £757 per month. Whether this procedure is correct or not I am not sure but I still make the payments.
There were no modifications from creditors regarding overtime etc. some mods were 15% reduction in payments without a meeting and any under payments to be added on at end of five years. Also my property is not included ijn IVA so there was no equity clause.Last year my IP increased our payment and as I have stated in previous posts I do not know how he arrived at the Income figure which was above my monthly net income
I have just been reading the terms of my IVA and it states that "If the Supervisor calls for an increase in payments as a result of the information provide [I&E Report] I undertake to accept the supervisors reasonable decision and pay any reasonable increase in payment which may be determined."
I take it this answers my question in that any increase in surplus income will be used to increase our IVA payments...